Kumari Palany & Co

No. of views : (2134)

Central Government Order: Hired Taxi Service Companies to get just 20% of the fare!

Posted on: 28/Nov/2020 1:07:55 PM
The Central Government has ordered that the ‘Hired Taxi Service Companies such as Oola and Uber, etc., must pay the drivers of the hired taxi an amount of 80% of the fare and the service organisation must take the remaining 20% of the fare.

The Central Ministry of National Highways and Road Transport released the guidelines to be followed by the organisations for hired Taxi services on Fridays. It is mentioned in the guidelines:

  • During the peak traffic periods when the demand for the hired services is higher, the hire services company may charge an additional 50% to collect 150% of the fare from the customer.
  • At the same time, when there are periods when the demand for the hired taxi services is rather low, these organisations are permitted to charge 50% less!
  • In the states where the minimum fare is not yet fixed, it is now fixed as Rs. 35 to Rs. 30.
  • The drivers employed by the hired services organisations for running the vehicles must be paid 80% of the fare collected from the passengers.
  • The system of sharing fares with other passengers will now apply only to women. In case they cancel the travel, the drivers can collect 10% of the fare from them.

The Drivers have welcomed this announcement by the central government! However, they have appealed to the central government that with the hired taxi service companies are already charging 25% to 30% of the fare and this must now be reduced to just 10%!