Checking of driver’s skills, papers is govt’s responsibility: Ola, Uber tells ministry

New Delhi: Uber and Ola have asked the government to review proposed cab aggregator guidelines that make it incumbent on them to test drivers for the necessary skills and ensure that all documentation is in order. They say they’re just platforms that link customers and ‘driver partners,’ and that such compliances should be the responsibility of government departments and law enforcement agencies, said people with knowledge of the matter.

Uber declined to comment. Ola didn’t respond to queries.

“Both Uber and Ola have written to the transport ministry expressing grave discontent with these guidelines,” said a person aware of the development. “The companies have raised issues with almost all compliances laid down in the policy.”

The ministry of road transport and highways is examining their concerns and will assess whether there is any scope for modification, a government official told ET.

Simulator Facilities
“We will examine what their concerns are. If we feel there is any scope for modification, then we will make some,” the official said.

India unveiled a regulatory framework for cab aggregators in November, capping commissions and fares. The commission is limited to 20% of the total fare and surge prices at 1.5 times the base fare. State governments will use these guidelines to license aggregators.

The guidelines call for the establishment of test facilities with simulators to check the ability of drivers. The aggregators should also need to have a setup for conducting induction training programmes. They have objected to such requirements.

“The companies are of the opinion that it rests upon the government to provide a valid driver’s licence, and such compliances should not be slapped on aggregators,” said the person cited above.

The proposed rules say that aggregators should ensure the possession of valid documents such as registration, permits and fitness certificates among others before a driver is engaged. The aggregators say this is something the authorities have to be responsible for.

The long-pending guidelines for regulating cab aggregators were issued by the ministry of road transport and highways as part of the Motor Vehicles (Amendment) Act, 2019.

The ministry has also detailed the circumstances under which an aggregator’s licence can be revoked.

These include a “systemic failure” by the aggregator to ensure the safety of users or drivers, repeated financial inconsistencies, unjustified surge pricing, and the violation of safety standards that affect the health and safety of drivers and passengers.

“We have provided adequate protection to cab aggregators in this regard. State governments cannot arbitrarily revoke their licences,” said the official cited above.

While the regulatory framework has been laid down by the Centre, states will have to issue their own rules based on this to put them into effect.