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Voluntary Committee for Smart Applications Captains calls on Jordanian government to initiate crucial reforms
(MENAFN) The Voluntary Committee for Smart Applications Captains has called on the Jordanian government to initiate crucial reforms aimed at improving the operational framework for vehicles used in ride-sharing applications. The committee is advocating for an extension of the vehicle lifespan from seven years to ten years, capping the commission fees that companies deduct from drivers, and raising the allowable working age for drivers from 60 to 65 years.
Committee members argue that the current seven-year limit is inadequate for drivers to recover their investments. They point to the increasing operational costs, higher bank interest rates, customs duties, vehicle prices, and extended repayment terms that have arisen in the wake of the COVID-19 pandemic. This financial strain on drivers underscores the urgent need for regulatory changes.
Additionally, the committee is pressing the government, particularly through the Ministry of Transport and the Land Transport Regulatory Authority, to impose limits on the commission rates that companies can charge. They express concern that foreign ride-sharing companies are taking up to 30 percent of the total fare from Jordanian drivers, which they find excessive. The committee emphasizes that this arrangement often leaves drivers with a net income lower than the commissions taken by the companies, especially since the commission was set at just 7 percent when these companies were first licensed in 2018.
In a memorandum submitted to Prime Minister Dr. Jaafar Hassan, the committee also highlighted the necessity for well-defined contracts between operators and service providers. These contracts, which should be regulated by the Land Transport Regulatory Authority, must include clear terms that safeguard the rights of both drivers and companies. The committee believes that such transparency in contractual obligations will enhance the stability and security of the work environment for drivers.
Overall, the proposed reforms aim to establish a more equitable and sustainable system for both drivers and ride-sharing companies, ultimately contributing to a fairer transportation sector in Jordan.
Committee members argue that the current seven-year limit is inadequate for drivers to recover their investments. They point to the increasing operational costs, higher bank interest rates, customs duties, vehicle prices, and extended repayment terms that have arisen in the wake of the COVID-19 pandemic. This financial strain on drivers underscores the urgent need for regulatory changes.
Additionally, the committee is pressing the government, particularly through the Ministry of Transport and the Land Transport Regulatory Authority, to impose limits on the commission rates that companies can charge. They express concern that foreign ride-sharing companies are taking up to 30 percent of the total fare from Jordanian drivers, which they find excessive. The committee emphasizes that this arrangement often leaves drivers with a net income lower than the commissions taken by the companies, especially since the commission was set at just 7 percent when these companies were first licensed in 2018.
In a memorandum submitted to Prime Minister Dr. Jaafar Hassan, the committee also highlighted the necessity for well-defined contracts between operators and service providers. These contracts, which should be regulated by the Land Transport Regulatory Authority, must include clear terms that safeguard the rights of both drivers and companies. The committee believes that such transparency in contractual obligations will enhance the stability and security of the work environment for drivers.
Overall, the proposed reforms aim to establish a more equitable and sustainable system for both drivers and ride-sharing companies, ultimately contributing to a fairer transportation sector in Jordan.
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