4 App-based Taxi Aggregators, Including Ola & Uber, Fail to Comply With Centre’s Guidelines

If you are a frequent user of app-based taxi services in Maharashtra, you might want to know that four aggregator firms, including Ola and Uber, have failed to comply with some provisions of the Centre’s Motor Vehicle Aggregator Guidelines 2020. This has led to the Mumbai Metropolitan Region Transport Authority (MMRTA) seeking guidance from the state government on issuance of licences to them.

What are the Centre’s Motor Vehicle Aggregator Guidelines 2020?

 The Centre’s Motor Vehicle Aggregator Guidelines 2020 were issued by the Ministry of Road Transport and Highways in November 2020 to regulate the app-based taxi services in India. The guidelines aim to ensure safety, comfort, convenience and affordability of passengers, as well as welfare and social security of drivers.

Some of the key provisions of the guidelines are:

• The aggregators have to obtain a licence from the state government to operate their services.
• The aggregators have to pay a security deposit of Rs 5 lakh per district of operation, subject to a maximum of Rs 1 crore.
• The aggregators have to ensure that the drivers have valid driving licences, badges, permits and insurance.
• The aggregators have to provide training to the drivers on road safety, customer service, gender sensitisation and basic first aid.
• The aggregators have to cap the surge pricing at 1.5 times the base fare and reduce the commission charged from drivers to 20% or less.
• The aggregators have to establish a control room with a 24x7 helpline number and a grievance redressal mechanism for passengers and drivers.
• The aggregators have to share the data of their operations with the state government and the Centre as per the guidelines.

Why did Ola and Uber fail to comply with the guidelines?

In February 2023, the Supreme Court had directed app-based taxi aggregators to apply for a licence within the March 6 deadline in order to ply their trade in Maharashtra. Following this, Uber India System Limited and ANI Technologies Limited, which operate Uber and Ola app-based services, respectively, had applied for cab aggregator licence at Tardeo RTO in south Mumbai in the beginning of March.

At the end of that month, the MMRTA had granted them temporary licence on the condition that they would need to comply with the Motor Vehicle Aggregator Guidelines 2020. However, according to RTO officials, none of the four applicants, including two other companies namely Cab-age Infra Tech Private Limited and Media Miles Private Limited, were found to be fulfilling them.

Some of the reasons for non-compliance were:

• The companies did not pay the security deposit as per the guidelines.
• The companies did not install simulators for driver training or conduct driver medical check up.
• The companies did not provide certificates of drivers or verify their antecedents.
• The companies did not adhere to the surge pricing cap or commission limit.

What are the implications of non-compliance?

The MMRTA has decided to take guidance from the state government on issuance of licences to these four app-based taxi aggregators. The state government had appointed a committee under the chairmanship of retired additional chief secretary Sudhir Kumar Shrivastava in April this year to draft the Maharashtra Motor Vehicle Aggregator Rules.

The committee is expected to submit its report soon and recommend appropriate action against the non-compliant aggregators. The action could range from imposing penalties to cancelling their licences. This could affect the availability and affordability of app-based taxi services in Maharashtra.

What can you do as a passenger or a driver?

As a passenger, you can:

• Check if your preferred app-based taxi service has a valid licence from the state government before booking a ride.
• Report any issues or grievances related to safety, comfort, convenience or affordability of your ride to the aggregator’s helpline number or grievance redressal mechanism.
• Choose alternative modes of transport such as public buses, trains or autorickshaws if you find app-based taxi services unavailable or unaffordable.

As a driver, you can:

• Ensure that you have valid driving licences, badges, permits and insurance before joining any app-based taxi service.
• Seek training on road safety, customer service, gender sensitisation and basic first aid from the aggregator or other sources.
• Demand fair and transparent terms and conditions from the aggregator, such as surge pricing cap, commission limit, incentives and social security benefits.

Conclusion

The Centre’s Motor Vehicle Aggregator Guidelines 2020 are aimed at regulating the app-based taxi services in India and ensuring the welfare of passengers and drivers. However, four aggregator firms in Maharashtra, including Ola and Uber, have failed to comply with some of the provisions of the guidelines. This has led to the MMRTA seeking guidance from the state government on issuance of licences to them. The outcome of this process could have a significant impact on the availability and affordability of app-based taxi services in Maharashtra. Therefore, passengers and drivers should be aware of their rights and responsibilities and choose their app-based taxi service wisely.