Cab aggregators like Ola, Uber etc. have become increasingly popular in the country. The use of these people to go to their office, market has increased rapidly. Along with cabs, these aggregators also provide convenience to customers by auto, bike. Now the government has issued guidelines for their regulation. In this, the aggregator is defined for the first time. The Ministry of Road Transport and Highways released the Motor Vehicle Aggregator Guidelines 2020 on Friday.
Their goal is to regulate shared mobility and reduce traffic and pollution. In addition, the definition of the aggregator is included. For this, the Motor Vehicle 1988 has been amended with the Motor Vehicle Act, 2019. The Ministry stated in the press release that the regulation of the aggregator was not available before the amendment. It also has to ensure ease of doing business, safety of customers and driver’s welfare.
Motive to make aggregator accountable
The guidelines said that the license issued by the state government is mandatory for the approval of business operations by the aggregator. State governments will have to follow the guidelines given by the central government to regulate the aggregator. To ensure compliance with the requirements of the license, there is a provision of penalty under section 93 of the Act. The purpose of the guidelines is to create a regulatory system for the aggregators by the state governments to ensure that the aggregators are accountable and responsible for the operations carried out by them.
Business will also be considered as a service provided by the aggregator which creates jobs and provides transportation to the people which is economical and comfortable. This will also help the government to achieve maximum use of public transport. Fuel consumption will be reduced, which will reduce the import bill. With this, the pollution from the vehicle will decrease which harm the health of the person. The ministry had exempted electric vehicles and vehicles operating on ethanol and methanol from the permit requirements through a notification issued in 2018.
Guidelines for these in the guidelines
The proposed guidelines will ensure these things:
- Regulation of aggregator.
- The conditions and qualifications required to become an aggregator of an entity.
- Compliance related to vehicles and drivers.
- Compliance with aggregator app and website.
- Method of correct regulation.
- Driver’s Welfare.
- Ensuring the safety of citizens.
- Rules for pooling and ride sharing in private cars.
- License fees or security deposits.