The government’s decision to recognise cab aggregators as digital intermediaries or marketplaces in The Motor Vehicles (Amendment) Bill, 2019, is seen as a win-win situation for aggregators and passengers.
While cab aggregators say the Bill plays an important role in recognising the industry, the government expects it to make cab rides hassle-free, and to some extent, fear-free. If implemented, aggregators violating driving licences will be fined from `25,000 up to `1 lakh. Any violation of the IT Act (including storing of user data safely) will attract fines between `5,000 and `1.5 lakh.
“We welcome The Motor Vehicles Amendment Bill, 2019, which acknowledges that technology and innovation play a key role in transforming India’s mobility landscape. We will continue to support the government’s vision to harness technology for shared mobility and safety,” an Uber spokesperson told this publication.
An industry executive, who did not wished to be named, said that identifying aggregators as a stakeholder can lead to more players entering the sector, which otherwise is entirely dominated by only two major players. A senior government official said the amended Act, once put in place, will give authorities the power to regulate aggregators. “This would ensure that they follow the rules and not restore to anti-consumer practices. Also, the Act now makes aggregators more answerable in cases related to safety of passengers,” he said.
During the early years of operations of Ola and Uber, a series of rapes, among other dubious incidents, created a stir, inviting strong demands from several quarters to regulate the cab aggregators. However, there is no classified central Act that regulates them till date, thus letting them to distance themselves from the misconduct taking place in cabs.
The Supreme Court has also asked the Centre to examine the possibility of changing laws to make firms such as Ola and Uber liable for crimes committed in their cars.On July 31, 2019, the Rajya Sabha passed the Motor Vehicles Bill, which contains the provisions to make roads safer. The Lok Sabha had already passed the Bill earlier.