Home Law in IT New legislative initiative of the Ministry of Transport of the Russian Federation sticks in the wheels of cab services

New legislative initiative of the Ministry of Transport of the Russian Federation sticks in the wheels of cab services

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The Ministry of Transport has developed amendments to the draft law "On state regulation of passenger and luggage transportation by cab in the Russian Federation". The Ministry of Transport began to prepare amendments back in 2015. As of today, the "toughest" version of the amendments has come out from under the pen of the agency, according to RBC’s sources.
If the amendments are passed in their current form, online services will not be able to set fares for transportation without coordinating with carriers. The latter constantly complain that they cannot compete with their "underpriced" online services.
Cab service is not a monopoly, carriers have a choice to work with him on the tariffs or not to work, the interlocutor argues. He does not understand the initiative of the Ministry of Transport. The need to agree on rates with the carriers will have an impact "not in favor of customers", agrees an employee of the online aggregator of transportation.
Transportation agents, including online aggregators, should carefully choose counterparties – taxi fleets and private drivers, says the Ministry of Transportation.
He suggests that services such as. "Yandex.Taxi." , Gett , Uber , checked their permit for passenger (and luggage) transportation activities and documents on the right to entrepreneurial activity. Until now, there were no such requirements in the legislation.
New requirements will lead to increased time and material costs on the part of cab services.
The amendments also introduce the responsibility of the aggregator to the passengers for the quality of service. However, RBC’s interlocutors in several major online cab aggregators remind that they are only intermediaries between passengers and carriers and cannot bear such responsibility. Uber, Yandex.Taxi and Gett even have a special clause in their agreement with users.
In addition to the above proposals, the Ministry of Transport is in favor of fixing the maximum number of transportation permits issued in Russia. If the number is higher, auctions should be held.
Limiting the number of permits is "a sensible idea, " says Bogdan Konoshenko, general director of Eurotransservice and chairman of the Moscow Chamber of Commerce and Industry’s Taxi Committee. At the same time he says that it should be allowed at the same time to sell licenses, to lease and to pass on the inheritance. Such rules, for example, are in force in New York. This would help protect the market from unfair competition, Konoshenko believes.
Earlier edition of Kommersant reported The Federation of Russian Automobile Owners (FAR) complained to Prime Minister Dmitry Medvedev on behalf of cab drivers about the fact that the service refused to initiate proceedings against the cab service Uber, Gett and Yandex.Taxi. It was noted that in July 2015 FAR sent appeals to FAS, General Prosecutor’s Office and Public Chamber with a request to check the activities of aggregator companies working in the taxi market for compliance with Russian legislation.
Vyacheslav Lysakov, First Deputy Chairman of the Duma Committee on Constitutional Legislation and State Construction said "Everyone should be responsible for himself – the dispatch service, through which the client orders a cab, ensures that the carriage will be made by a licensed driver. And the driver who carries out the order is responsible for safety and quality of service. It would be strange if the dispatcher is responsible in case of an accident involving a cab driver, " he argues.
Lysakov is preparing his own version of the amendments. He proposes to introduce the definition of "dispatch service" into the bill, i.e. to form a legislative definition of the business of online aggregators.
On April 25 a conciliation meeting is scheduled in the government on the draft amendments to be attended by representatives of the Ministry of Transport, Ministry of Economic Development, Ministry of Justice, the Moscow government and the three largest online aggregators – Yandex.Taxi, Gett, Uber, said a source in one of the major services, cab aggregators RBC.

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