MPs Weigh Minimum Ride-Hailing Fares as Uber, Bolt and Faras Warn of Higher Costs

The National Assembly's Communication, Information and Innovation Committee is examining proposed minimum fares for ride-hailing services like Uber, Bolt and Faras. The companies warn that mandatory minimum fares could lead to higher transportation costs and lower earnings for drivers, as they rely on more factors than just the fare per trip.

These factors include the number of trips completed, passenger demand, vehicle utilization and operating costs. The ride-hailing companies urge Parliament to maintain market-based pricing and warn that higher regulated fares could drive passengers towards less reliable options and create market distortions. They also challenge the 18% service fee cap, arguing that it restricts their ability to invest in promotions, incentives, safety technology and other products.

The companies propose removing the cap and allowing platforms to use different commercial models, subject to transparency and consumer protection rules. They also recommend extending the duration of operating licenses, from the current annual renewal requirement, to give companies more certainty and stability. The committee will assess the potential impact of the proposed changes before making recommendations, aiming to protect consumers, support drivers and encourage innovation in the industry.