India

CCI for self-regulation of surge pricing by cab aggregators

The Competition Commission of India (CCI) on Friday proposed a set of self-regulatory measures for cab aggregation services with respect to surge pricing.

According to various measures recommended by CCI, cab aggregators should provide customers with general description of various components of total fare with clear mention of the surge component in the invoice. Also, in case of rude cancellation, drivers should be notified in a transparent manner what portion of cancellation charge is taken by the cab aggregator, and what portion is passed on the drivers.

These recommendations were based on a market study conducted by CCI into regulations pertaining to cab aggregation industry where companies such as Ola and Uber are dominant players. However, these measures are more in terms of a guidance.

“This advisory is being issued based on the observations and recommendations of the study in the Cab Aggregators (CAs) market in India and the mandate of the Commission, inter alia, to ensure fair competition and for overall a well-functioning ecosystem,” said CCI in an official release. “While any anti-competitive conduct of CAs may attract enforcement action, the CAs are advised to adopt self-regulatory measures to address information asymmetry and transparency concerns,”

Another key recommendation put forth by CCI is regarding preferential access to certain cabs. The anti-trust regulator said the algorithms of the cab hailing services should ensure that vehicles owned by CA platform don’t get any preference to one over the others.

CCI has also asked the companies to ensure more transparency in terms of customer data collected. “Set out a clear and transparent policy on data that is collected on the CA platform, the use of such data by the platform, and also the potential and actual sharing of such data with third parties or related entities. The scope, extent and purpose for data collection be also set out clearly,” CCI said.

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