Maharashtra government forms panel to draft regulations for online cab aggregators
- ByStartupStory | April 7, 2023
The Maharashtra government has set up a six-member panel to develop draft regulations for governing online cab aggregator platforms in the state. According to a report in The Indian Express, the high-level committee will offer suggestions and present a report within the next three months. The move comes as local authorities seek to regulate the operations of these platforms in a more effective manner.
The Maharashtra government has appointed a panel of senior officials, including former IAS officer Sudhir Shrivastava, to lead the formulation of draft regulations for online cab aggregators in the state. As per a report, the new regulations could feature a cap on surge pricing and enhanced safety measures, such as panic buttons in vehicles. A state official said that the recommendations would take into account existing concerns and also align with the central government’s guidelines. The committee will submit its report within three months, according to the local authorities.
The panel appointed by the Maharashtra government to draft regulations for online cab aggregators is set to study previous rulings by the Bombay High Court and Supreme Court on the matter. The resulting report, titled the ‘Maharashtra Regulation of Aggregators Rules’, will apply to all cab aggregators and drivers operating in the state under government supervision. The new guidelines will give the state government the power to prosecute non-compliant platforms. An official noted that the regulations are expected to follow the central government’s guidelines while also incorporating additional provisions to meet local needs. The report is due to be submitted within three months of the panel’s appointment.
The Maharashtra government’s efforts to regulate online cab aggregators follow its recent ban on non-transport vehicles from engaging in ride pooling and aggregation. The move was aimed at enhancing public safety. However, it has sparked tensions with bike taxi platforms, with Rapido challenging the ban in court. The case is pending before the Bombay High Court. Several Indian state governments, including Karnataka and Delhi, have banned app-based auto and bike taxi services. These regulatory hurdles have posed challenges for ride-hailing startups in the country. Nevertheless, the industry continues to thrive, dominated by Ola and Uber, while Rapido has emerged as a major player in the auto and bike taxi segments. Despite the setbacks, the Indian ride-hailing market is expected to grow to INR 6,159 Cr by 2024.
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