Guidelines for Cab Aggregators in India

On 26th November 2020, The Ministry of Road Transport and Highways has notified the Motor Vehicle Aggregator Guidelines, 2020 (“Guidelines”) as per the provisions of the Motor Vehicles (Amendment) Act, 2019.

Highlights of the Guidelines are as follows–

  • Aggregator has been defined as a digital intermediary or marketplace for a passenger to connect 
with a driver for the purpose of transportation.
  • Compulsory License – Any person can apply for the aggregator’s license and will have to submit security deposit and fee along with the form as prescribed under the guidelines. The license will be issued by the State Government and will have a validity of 5 years.
  • KYC Requirements - Compliance with regards to the drivers must be ensured by the aggregators. The drivers shall have a valid proof of identity (Aadhar or PAN Card). The driver 
shall also hold a valid driving license, KYC compliant bank account details or Jan Dhan Account. Further, the aggregator shall ensure that the driver has not been convicted of any cognizable offences within past three years and police verification and complete medical check-up has also been mandated.
  • Vehicle Requirements - The aggregators must also comply with the regulations with regards to 
the vehicle. The vehicle must have been registered, must have permits (if applicable), requisite 
placement of registration on the vehicle.
  • The Aggregator’s app will have to be made accessible in English and Hindi as primary languages for the rider along with one official language of the relevant state. The aggregators will have to store the app data in a server located in India and has to be stored for a minimum of three months and maximum of 24 months.
  • Women Safety - 
 Induction trainee program to be conducted by the aggregator which shall cover education and training on various subjects such as, inter alia, gender sensitization and safety of women and girl child. Further, mechanisms have to be introduced for protection of rights of women in compliance with Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
  • Driver welfare- Drivers to be given health insurance and Annual Refresher Training Programs will have to be conducted. The apps should have a mechanism to ensure that driver do not drive beyond a cumulative period of 12 hours. Drivers to receive rating from rider and in case the rating goes below 2 percentiles, then the driver will have to go through a Remedial Training program. Also, the guidelines state that the driver shall receive at least 80% of the fare applicable on each ride which essentially caps the commission charged by the aggregators at 20%.

These guidelines are the first attempt to regulate aggregators to ensure driver’s welfare and customer safety. To know more about the Guidelines click here.

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