Uber objects to fare limits, higher permit fees

TIL Desk/Business/Mumbai-App-based taxi aggregator Uber has raised objections against the state government’s proposal in the draft Maharashtra City Taxi Rules 2016 for minimum and maximum fares. It said pricing should be based on economic models of demand and supply, and not determined by regulations.

Uber in its representation to the government argued that a cap on the minimum fare would prevent market forces determining cheaper rides when possible. Uber has received support from 118,000 riders to its online petition against some of the rules. “Certain elements of the draft risk the very progress we have made,” Uber (Mumbai) General Manager Shailesh Sawlani said.

He insisted there should be less regulation in order for companies like Uber to continue to provide services to commuters. On the government’s proposal that more that 50 per cent of the vehicles on ride-sharing platforms be over 1,400 cc, Sawlani said it would mean economical and fuel-efficient vehicles would disappear from the platform. “It also takes away the flexibility of drivers to have the vehicle of their choice, forcing them to buy more expensive cars, which will in turn increase fares,” he noted.