Government issues new guidelines for Ola, Uber: Here is all you need to know

The government on Friday issued fresh guidelines for cab aggregators such as Ola, Uber under a regulatory framework. The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2020 as per the requirements and provisions of the Motor Vehicles (Amendment) Act, 2019 and further as per  the amended Section 93 of the Motor Vehicles Act, 1988. This has been done in an attempt to make aggregators accountable and responsible for their operations while ensuring customer safety and driver welfare. 

The objectives of issuing these guidelines include: 

• Regulating shared mobility and reducing traffic congestion and pollution, the Motor Vehicles Act, 1988 has been amended by the Motor Vehicles Amendment Act, 2019  to include the definition of the term ‘aggregator’. 

• Prior to the amendment the regulation of Aggregator was not available 

• To provide ease of doing business, customer safety and driver welfare 

The Guidelines provide for -  

• License issued by the State Government is a mandatory re-requisite for permitting business operations by the aggregator. 

• For regulating the aggregators, the guidelines specified by the Central Government may be followed by State Governments 

• In order to ensure compliance with the license requirements the Act stipulates penalties under Section 93 of the Act. 

• These Guidelines seek to establish a regulatory framework for aggregators by State Governments to ensure that the aggregator’s are accountable and responsible for the operations executed by them. 

• The business shall also be considered as a service provided by the aggregators to serve the larger public interest in terms of generation of employment, commutation facilities to the public which is cost effective and comfortable. 

• enable the government to achieve its goal of ensuring maximisation of using public transport, reduced fuel consumption consequently reducing the import bill, reduced vehicular pollution thereby reduced harm to human health.  

• This Ministry vide notification dated S.O. No. 5333(E) dated 18th October, 2018 has exempted the electric vehicles and vehicles running on Ethanol or Methanol from the requirements of Permit. The State Governments to facilitate operations of such vehicles. 

Proposed Guidelines to ensure - 

Ø regulation of aggregators, 

Ø eligibility conditions / qualifications for of an entity to be an aggregator, 

Ø compliances with regard to vehicles and drivers 

Ø compliances with regard to Aggregator App and Website 

Ø manner of fare regulation, 

Ø drivers welfare 

Ø service to citizens parameters and ensuring safety 

Ø evolving concepts like pooling and ride sharing in private cars, 

Ø license  fees / security deposit and powers that the State Governments