EXCLUSIVE: Your Uber, Ola rides could get much more expensive if it were up to the Maharashtra government

Cab aggregators like Uber and Ola have become an essential part of our lives for just the sheer amount of convenience they provide. Except for the surge-pricing which is a mild inconvenience for us, our lives have become much simpler with these on-demand cars.

Every state government has been dealing with the continuous strikes by the kali- peeli taxi unions and auto rickshaw drivers.
Maharashtra government had released the draft for Maharashtra City Taxi Rules, 2016, to regulate app-based operators but these rules are detrimental to the ecosystem itself.

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According to the guidelines, an application for grant or renewal of a license for a taxi will cost INR 1,00,000 and on top of that the license itself will cost INR 25,000 for cars up to engine capacity of 1,400 CC and for higher capacity engines typically sedans, the license will cost INR 2,61,000! Between Ola and Uber there are about 20,000-40,000 cars plying in the state, and about half of them are sedans according to Ola.

Now, as taxi-aggregators are just a platform, these costs, if implemented will be transferred to drivers and then, ultimately consumers.
Business Insider caught up with two Ola drivers to find out how this will affect their already dwindling livelihoods.

Jia-Ul-Haq, a car operator said- ‘While Ola has given us a lot of employment, our salaries have been decreasing, year-on-year. The new guidelines will leave us with nothing and close to the brink of poverty. We are already paying for auto loans, car insurance and this will make sure that we don’t even get the INR 20,000, which we earn right now.’

Mohammed Nazim who works with four Ola drivers said,’ Where is the development in this? It is all about the inconvenience. The cost will be ultimately transferred to the customers otherwise these charges will put us further into debt.’

Pranay Jivrajka, COO, Ola talked to us to talk about an alternative scheme which is very inclusive in nature and enables and gives an opportunity for aggregators to bring all forms of mobility on the platform. This also allows the traditional cabs to join.
He said ‘If a driver has to buy a vehicle, he saves up INR 40-70,000 right now to get the car on road, but permit costs are projected to get as high as INR 3.5 lakh. It will be quite difficult for a driver to turn into an entrepreneur. No one gives loans on permits fees. This will drastically impact the growth of supply and therefore growth of industry.’

All of this, in the financial capital of India, where the taxi unions seem to be running the show, instead of their vehicles.