Radio cab association opposes Delhi government ban

NEW DELHI: A day after Delhi government banned all app-based cab services, Association of Radio Taxis criticized the move, arguing that the demand-supply gap will widen. The association members said that already all the cab services together weren't able to cater to the demand, and now with many cabs off the road, people will be inconvenienced. But at the same time, they blamed the government for letting Uber and other cab services ply without taking necessary clearances.

The president of the association, Kunal Lalani, said all taxis must be regulated. Distancing themselves from companies like Uber and Ola which describe themselves as aggregators, he said, "We had earlier approached the government to regulate these app-based services which didn't come under the law. These companies have started operating without seeking any licences from the state transport authorities, presenting themselves as technology companies."

Clarifying that the association was not against technology, Rajiv Vij, founder-member, said: "It's not a question of technology. Our only demand is that they be licensed and made to follow the law of the land like we do. Even we take bookings through apps and online but we have our drivers on rolls and their background is thoroughly checked."

The aggregator model, also called the asset-light model, allows companies like Uber, Ola Cabs and Taxi-for-Sure to run app-based cab-booking services without actually having any driver on their rolls unlike private radio taxi operators such as Meru, Mega and Easycabs.

The association said there are around 19 licensed companies in India with more than 25,000 odd cabs together.

As per Vij's estimation, every radio taxi generates a revenue of Rs 70,000-Rs 80,000 per month and the radio taxi industry is valued at Rs 50,000 crore. "The government should have laid down certain guidelines and not allowed cabs to operate without taking the necessary clearances," Vij said.

The members of the association have now decided to adopt more security measures, like setting up call centres. If a woman boards a cab, she would receive a call from the cab service to check if things are in order. Another member suggested a panic button in the cab for the passenger as well.

Worried that the trust and confidence of people in private cabs has been shaken following the rape case, Lalani said passenger safety and security should be given top priority by all concerned. "An impression is being created that all radio cabs are unsafe. But that is completely false because we are running licensed services."