India plans to cap commissions collected by Uber, Ola: Report

The Uber Technologies Inc. application is displayed in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Arlington, Virginia, U.S. on Monday, April 29, 2019. Photographer: Andrew Harrer/Bloomberg

India plans to cap commissions app-based taxi aggregators such as Uber <UBER.N> and home-grown Ola earn on rides to a maximum 10% of the total fare, financial daily Economic Times (ET) reported on Thursday, citing people privy to the matter.

The potential move could be another blow to San Francisco-based Uber after the ride-hailing firm was stripped of its license to carry paying passengers in London on Monday for the second time in just over two years over a “pattern of failures” on safety and security.

Ola too has announced its expansion into London, a market also occupied by Estonia’s Bolt and the city’s ubiquitous black cabs.

This is the first time the Indian government is looking to regulate commissions collected by such firms, which currently stand at about 20%, the paper reported.

Uber and Ola did not immediately respond to Reuters requests for comment.

The two companies, which count Japanese investment major SoftBank Group Corp <9984.T> as one of their backers, dominate the Indian app-based taxi market and were even partly blamed for slowing auto sales in the country by its finance minister.

The government’s planned move would allow states to levy charges on these aggregators’ earnings if they choose to, ET reported, adding that there were also plans to cap surge pricing to twice the base fare.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.