UP makes registration mandatory for Ola, Uber ride hailing services; New rules aim to boost passenger safety

Uttar Pradesh government mandates registration for ride-hailing platforms like Ola and Uber. The new rule aims to regulate aggregators, enhance passenger safety, verify drivers, and strengthen monitoring of app-based cab services.

The Uttar Pradesh government will now ask app-based cab aggregators like Ola and Uber to register themselves with the state transport department before operating business in the state. In this decision passed in the Cabinet, ridesharing firms would now be expected to register with the Uttar Pradesh transport department to ensure better passenger safety and surveillance.

UP Cabinet Makes Registration With Transport Dept. Mandatory for Ride Aggregators

The new rules are set to streamline regulations surrounding ride aggregators with all their drivers, cars and aggregators. With the registration process streamlined by the UP Cabinet, cab aggregators will be forced to operate under tighter regulation.

“This will help authorities keep tabs on drivers as well as app-based taxi services. All cab operators who provide service through mobile applications will have to take registration in UP,” read the news report by Economic Times.

Taxi companies will now have to complete official formalities before driving customers around in the National Capital Region (NCR) and other parts of Uttar Pradesh.

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Registration of cab aggregators to be as per amended Motor Vehicles Act

Making this announcement in Lucknow, state Transport Minister Dayashankar Singh said, “Government has taken this decision in compliance with the amended Motor Vehicles Act.”

In July last year, the Centre notified fresh guidelines governing aggregators of app-based taxis. These changes were made to the Motor Vehicles Act, 1988. With this latest development, Uttar Pradesh government is all set to bring the cab aggregators under purview of these amended guidelines.

As per Section 93 of MV Act, “No person shall, except under the authority of a licence granted by the appropriate Government, carry on the business of a transporter by means of any vehicle.”

Cab aggregators offering services on digital platforms would now need a licence to operate in Uttar Pradesh.

Penalty for running unregistered cabs

Speaking further about the development, Singh added that the authorities would “not allow any unregistered cab to run” in Uttar Pradesh. A license will be required for ride-hailing aggregators to function, which will be valid for five years. “If companies want to continue operations after 5 years, they will have to pay a renewal fee of ₹5,000,” Singh added.

Cab aggregators will have to pay ₹25,000 as application fees and a licensing fee of ₹5 lakh for deploying buses ranging between 50 and 100 or more.

Govt to develop app to display driver details to passengers

Shifting focus towards customer awareness, Singh further mentioned that a mobile application would be developed which would display details of drivers and vehicles to customers.

Uttar Pradesh becomes one of the latest states to introduce guidelines for app-based taxi services that are now gaining mass popularity across the country.