Include predatory pricing ban in taxi rules, urge fleetcabs

MUMBAI: Fleetcab operators will petition state transport commissioner Praveen Gedam this week, asking why there is no mention of curbing ‘predatory pricing’ in the draft City Taxi Rules and any clause on ‘share taxi rides’.
“The new rules should impose a ban on predatory pricing and spell out strigent punishments for violators. At the same time, it should define new rules to promote share rides in all types of taxis,” Meru Cab CEO Siddhartha Pahwa told TOI on Tuesday.Pahwa added that share rides will not only be cheaper for commuters, but also help reduce congestion and pollution.
Predatory pricing is pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market. “We have already petitioned the central panel on this issue, and demand that the state bring out a law against predatory pricing,” said Pahwa. Both Meru Cab and TabCab were badly hit by low fares offered by Uber and Ola, but the latter clarified that they too were against predatory pricing and encouraged a ‘competitive market’.
Fleetcab operators also objected to the government deciding on the number of big and small cars to be introduced on road. “It should be purely demand-based, and every operator should have the freedom to choose how many big or small cars need to be introduced in the market,” said Pahwa.
A TabCab official said they will demand a cap on the fleet size of operators. .
Fleetcab operators are happy with a few clauses, including the use of clean fuel and technology-based apps. “The clause on government deciding minimum and maximum fare for taxis depending on engine capacity will protect consumer interests,” said an operator.