New Delhi: For the first time in India, the Center has issued guidelines for regulating cab aggregators like Ola and Uber. The aggregator is defined for the first time. The move has come as a great relief to the ecosystem, which lacked a policy to regulate the sector.
The government has issued motor vehicle aggregator guidelines to regulate shared mobility and reduce vehicle congestion and pollution. The Ministry of Road Transport and Highways said in a statement that the purpose of these guidelines is to prepare a regulatory draft for aggregators by state governments, to ensure that aggregators are accountable for their operations. According to the statement, the Automotive Act, 1988 has been amended through the Motor Vehicle Amendment Act, 2019 to include the definition of the term aggregator.
Cab aggregators like Ola, Uber, etc. have become increasingly popular in the country. With the use of these by people to go to their office, the market has increased rapidly. Along with cabs, these aggregators also facilitate customers by auto, bike. Now the government has issued guidelines for their regulation. The Ministry of Road Transport and Highways released the Motor Vehicle Aggregator Guidelines 2020 on Friday.
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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. Also included is the definition of the aggregator. For this, the Motor Vehicle 1988 has been amended by the Motor Vehicle Act, 2019.
The government has defined the meaning of aggregator through the Automotive Aggregator Guidelines. According to this, aggregator means – digital intermediary or marketplace for connecting passengers with the driver for the purpose of transport.
According to a statement from the Ministry of Road Transport and Highways, there was no regulation for aggregators before the amendment. Under these amendments, the aggregator has to get a license from the state government to do business. State Governments may follow Central Government guidelines to regulate aggregators. There is also provision of penalty under section 93 of the Act for non-receipt of license. The Center on Friday sent a letter to the governments and administrations of all the states and union territories asking them to implement these guidelines.
