States to decide if Ola and Uber should use digital meters or GPS to calculate fare

An official from the ministry of road transport and highways has told ET that the power to decide whether cabs operated by apps like Uber and Ola should use digital meters or GPS to calculate fares will be given to the state governments, which can choose either rule for their states.

"Since transport is a concurrent subject, we have left it to the states to decide. The ministry is in favour of all solutions that facilitate commuters," the official said, adding that they have received several suggestions on transport reforms, one of them being making digital meters mandatory, since GPS readings vary, depending on mobile data availability and strength.

Also read: Centre asks states to cap the maximum fares Ola and Uber can charge

It’s because of the rising business of Uber and Ola that black-and-yellow taxis and auto-rickshaws are left with no business, which has forced them to knock the government doors for justice.

Also read: Maharashta might limit Ola and Uber operations in Mumbai

In Karnataka, it has been made mandatory for cabs to operate with digital meters that can print receipts.

In New Delhi, even though all cabs come with digital meters installed since it’s necessary for registration, they use GPS to calculate fares, which the ministry thinks is violation of the law.

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