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A committee set up by the Ministry of Road Transport and
Highways recently published its findings, stating that India
needed one regulatory framework for the taxi industry to promote
mobility and discourage car ownership.
It also said that aggregators, such as Uber [UBER.UL], Ola and
Meru, should be included under a "fair, uniform and transparent"
regulatory framework, along with radio taxis and traditional
city taxis.
The report's recommendations came against a backdrop of battles
with city authorities on issues such as dynamic, or "surge",
pricing that the ride hailing firms say they need to service the
$12 billion taxi market reliably.
"This is an important milestone in the development of
ride-sharing in India, and one that will help the industry
better serve riders, drivers and cities in the years ahead,"
said Amit Jain, president of Uber India.
"While there are concerns on price caps and price floors, the
framework will allow the industry to continue to flourish."
San Francisco-based Uber recently merged its Chinese venture,
making India its priority overseas growth market. It serves 29
Indian cities and sees a path to profitability as it takes on
its larger rival, Ola, which is backed by Japan's Softbank and
is present in 102 cities.
The transport ministry committee, which also sought input from
state officials, argued that it should be easy for private
vehicles to convert and operate under a commercial permit.
It was also supportive of dynamic pricing, within a specified
range, to match supply and demand during peak hours while
ensuring that consumers had proper protections. It also called
for a national policy on so-called "shared mobility" to reduce
congestion on urban roads.
Ola did not respond to a request for comment on the report but
fellow taxi-hailing company, Meru, said it welcomed the basic
thrust of the new guidelines.
Meru, however, expressed concerns over inconsistencies in the
proposed regulation of surge pricing of regular and deluxe
taxis; of clean fuel requirements; and called for curbs on the
conversion of private vehicles to taxis.
(Reporting by Douglas Busvine, editing by Louise Heavens)
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