Just a few days after the Karnataka Transport department announced policies and actions on price surge by taxi-hailing apps in the state, Maharashtra has taken stern steps in keeping a check on those taxi-hailing apps in their state.

Karnataka government had in last week set a price cap on how much could taxi aggregators charge their customers but, Maharashtra has taken the adoption one step forward and has introduced an induction scheduled for taxis, where only 25 percent of the fleet can be acquired at the time of being granted the licence, 50 percent in three months, 75 percent in six months and 100 percent in a year. This step is likely to keep the Ubers and Olas fleet out of business for few months. A proposal in this matter has been sent to the government.

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‘The fare will be decided on the cost of the vehicle and the engine capacity. The transport department will enjoy powers to cancel licences for non-compliance,” a Maharashtra minister told BS.

The aggregators debate that fare rates automatically increase, when the taxi demand is higher than drivers around you and prices are surging to ensure reliability and availability for those who agree to pay a bit more.

With more and more states adopting measures against price surging, it will benefit consumers heavily but hurt the aggregators.