India Watchdog Issues To Cabs & Ride Shares Ove Surge Pricing

The Competition Commission of India (CCI) Friday issued an advisory urging Indian cab aggregator (CA) platforms such as Uber and Ola to adopt self-regulatory measures “to address information asymmetry and transparency concerns” in key areas like calculation of fares, surge pricing, data collection and non-discrimination.

First, the CCI urged CA platforms to publize fare calculation and cancellation policies processes. The CCI further advised CAs to formulate transparent policies on surge pricing and show users the breakdown of revenue sharing between drivers and CAs. The platforms should also create data policies which clearly set out the “scope, extent and purpose for data collection.” Lastly, the CCI warned CAs not to discriminate between company owned and personally owned vehicles during ride allocation.

The CCI warned companies that that “any anti-competitive conduct of CAs may attract enforcement action.”

The CCI also published its full Market Study on Competition and Regulatory Issues Related to the Taxi and Cab Aggregator Industry: With Special Reference to Surge Pricing in the Indian Context.

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