Surge pricing: Bharat Taxi App in testing and trial phase, says Nitin Gadkari

New Delhi, Dec 11
Amid rising cases of surge pricing by private online cab aggregators, a mobile-based application called 'Bharat Taxi App' is in the testing and trial phase, Union Road Transport and Highways Minister Nitin Gadkari told Parliament on Thursday.

The Bharat Taxi App is aimed at supporting driver-owned taxi service on a cooperative model under the aegis of the Sahahkar Taxi Cooperative Limited (STCL), Gadkari said in a written reply to a question in Lok Sabha.

The National Cooperative Development Corporation (NCDC) plays a key role in establishing the cooperative-based 'Bharat Taxi' ride-hailing service. The new multi-state cooperative society has been registered, and driver enrolment, along with technological development, is in progress, according to an earlier statement by the government.

Gadkari further stated that the government has issued The Motor Vehicles Aggregators Guidelines, 2025, for aggregators, including app-based cab services, to provide a light-touch regulatory system, while attending to issues of safety and security of the user and the welfare of the driver. The competent authority for issuing licenses to such aggregators is the designated authority of the state government concerned, with jurisdiction across the entire state.

Apart from the safeguards for the passengers, the Guidelines provide for fare regulation.

"Understanding that the fare is determined by market forces of demand and supply of the aggregated vehicles, the Guidelines envisage dynamic pricing, allowing aggregators to charge 50 per cent lower than the state-notified base fares and capping the maximum surge pricing at twice the base fare for peak hours," the minister said.

“In order to ensure transparency, accountability and passenger welfare, the fare notified by the state will be the base fare."

According to the norms, the drivers' owned motor vehicles will receive at least 80 per cent of the fare, and, on the other hand, for motor vehicles which are owned by the aggregator, the on-boarded driver shall receive at least 60 per cent of the fare.

Therefore, in the case of surge pricing, the beneficiary will be the driver of the owned vehicle. This will spur supply and thereby enable better availability during periods of high demand, said Gadkari.

Also, the Guidelines provide for suspension and cancellation of the aggregator license on several grounds of violation, including unjustified fare/dynamic fare charged to the passengers.

"The Guidelines ensure that no passenger is charged for dead mileage, except when the distance for availing the ride is less than three kms, and the fare is charged only from the point of origin to the destination," said the minister.