The leading online transportation network companies in the nation, Uber and Ola are asked by the Government to calculate fares using Taxi meters rather than GPS. Both the companies are asked to abide the Motor Vehicles Act. The Act clearly says that the fares should be calculated by using taximeters.

“Taxi aggregators are currently violating the law by measuring distance through GPS,” a top road ministry official in a statement said to The Economic Times. “The Motor Vehicles Act clearly says that they have to go by the taxi meter.”

According to the feedback received, the government’s reason behind this decision is that the GPS does not calculate the travel distance accurately.  An official in a statement said, “We have told both Ola and Uber during the recent meetings that they have to fix this problem immediately.” “We keep getting complaints of inaccuracies in the fare mechanism of these cab aggregators.”

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Regarding the change of fare calculation mode, the Transport Ministry has recently held a meeting with the senior executives of Ola and Uber separately. Nitin Gadkari, Roads Minister early in this week told Rajya Sabha that his ministry was working on extensive guidelines to bring taxi aggregators under greater regulatory supervision.

Well, the black and yellow cabs or the traditional cabs currently charge Rs.25 for first Km and then Rs. 16 per km above and the night travel fare jumps up with 25 percent in between 11 pm to 5 am, whereas auto rickshaws charge Rs. 25 for first 2 km and thereafter Rs. 8. The night fare of 25%, in addition, is same for autos.

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At present, the Delhi-based Precision Electronics and Sansui Electronics are among the companies that assemble the government approved digital taxi meters.  The Indian Online transportation network company, Ola and American multinational Online Transportation Network Company, Uber roughly charge Rs. 7-8 per km. But fares keep on fluctuate based on the demand. For instance, at peak timing, the price may be Rs. 24 per km. The companies also provide time service which costs Rs. 1 per minute.


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