Big news for Ola, Uber! Now, there's a definition for cab aggregators

In a first, the Centre has come up with guidelines to regulate cab aggregators such as Ola and Uber, among others, in India. The move has brought much-needed relief to the ecosystem, which was struggling with the absence of policy governing the sector.

The government has defined the meaning of aggregator, through Motor Vehicle aggregator guidelines, as digital mediators or marketplaces for passengers to connect with a driver for the intent of transportation.

The 26-page action lines were issued on November 27.

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"The guidelines may be applicable to aggregators onboarding transport vehicles in the area of operation. The vehicles that may be integrated by the aggregator shall include all motor vehicles under the act and e-rickshaw," the Union Ministry of Road Transport & Highways said in the notification.

The licence awarded shall be valid for five years following which the aggregators will need to apply for renewal.

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The objectives of issuing these guidelines include:

o Regulating shared mobility and reducing traffic congestion and pollution, the Motor Vehicles Act, 1988 has been amended by the Motor Vehicles Amendment Act, 2019 to include the definition of the term 'aggregator'.

o Prior to the amendment, the regulation of aggregator was not available.

o To provide ease of doing business, customer safety and driver welfare.