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Home General

Govt may legalize tariff of online ride-hailing services

Andleeb Sidhu by Andleeb Sidhu
August 27, 2017
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The Islamabad Transport Authority (ITA) comes into act just days after taxi drivers put a protest in the country’s capital, Islamabad. The authority recommended that vehicles working for online ride hailing services would be obliged to display distinguishing stickers and pursue government synchronized tariffs. Tensions among the ride hailing services and conventional taxi drivers had been growing for a while and this proposal is planned to streamline the gap between both parties.

After quite a few rounds of discussion with the representatives of both ride hailing services and taxi drivers, ITA had suggested some advice to alleviate this problem and take away the tension; said Islamabad Transport Authority (ITA) Secretary Jawad Muzaffar to APP. In this view, a checklist is being bring together to cover all legal as well as technical loopholes to regulate online ride hailing services. Therefore, this checklist will be shared with all the concerned departments for discussion and amendments. Some of these recommendations are:

  • Fitness Certificate for private cars working for the online ride-hailing services such as Careem and Uber. As apparent, this certificate will be issued by Motor Vehicle Examiner (MVE).
  • Route authority will be issued for private vehicles operational for these online ride hailing services.
  • These vehicles will be required to display stickers on recommended places.

Over and above these recommendations, It was highlighted that:

  • A fare-list will be issued to online ride hailing services, which would have to be followed.
  • Excise and Taxation department has planned to alter the online ride-hailing based vehicle’ status from private to commercial.

In today’ world where consumers have a preference to search services on the internet, it is becoming very difficult for traditional taxi drivers to stay alive. A fact, which is resonated by many drivers from both sides, although in a radically different manner. Nevertheless, where two major sides take no notice of each other by claiming:

  • They provide better and economical services (drivers from Ride hailing services)
  • They are being robbed of their source of revenue (Cab drivers)

There is, on the other hand, a minority in this disagreement which advocates the regulation of these newly arrived online ride-hailing businesses. stressing the unfairness of circumstances by communicating a fact: that they have been paying heavy taxes over the years for operating a commercial vehicle. Their requirement is easy: regulate all such businesses to generate a level playing field for better competition.

It ought to be well-known that earlier this year, ride hailing services had run into difficulty with Capital’s district authorities after an announcement was subjected labeling them as outlaws; servicing in Islamabad devoid of registering with any regulatory body. This then kick off a crackdown on them but this crisis was turn aside by ride hailing service when they get hold of a stay from the court against this attack.

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