Electric push in draft Delhi policy for app-based cabs; bike taxis
The new rules, in the works since 2017, will put an end to the present regulatory vacuum for such services and tech firms that operate them
Chief minister Arvind Kejriwal on Wednesday approved a draft policy that will make it mandatory for app-based cab services such as Uber and Ola and delivery businesses to switch to all-electric fleets in seven years, legalise the operation of bike-taxis and outline rules for bike rental services in the national capital, said officials aware of the matter.
The new rules, in the works since 2017, will put an end to the present regulatory vacuum for such services and tech firms that operate them. These companies are currently not required to follow specific rules that conventional cab services are need to abide by.
Kejriwal, in a statement, said the Motor Vehicle Aggregator Scheme 2023 scheme will also help create employment opportunities for residents of Delhi.
“By transitioning to electric vehicles (EVs) and promoting electric bike taxis, the government will be able to reduce pollution levels in Delhi and create new opportunities for employment and economic growth,” he said.
The draft been sent to lieutenant governor (LG) VK Saxena for approval, after which it will be put up for public comment, said the officials. The draft will be returned to the LG for a final approval after public comments are incorporated.
The policy lends a specific focus on the use of and shift towards electric vehicles, with incentives for firms that make the transition faster than others.
“It’s the first time in India that a state has set targets to the aggregator to electrify their fleets and regulate such service providers, to ensure passenger safety and reduce pollution. So, on-boarding any EV once the policy kicks in will incur no license fee,” said transport minister Kailash Gahlot.
The draft policy has been prepared under Delhi Motor Vehicles Rules, 2023, which will be binding on ride-hailing companies, door-to-door delivery firms, e-commerce companies and other aggregators. The new protocols, a person aware of the rules said, will make it mandatory for these companies to register and obtain a license to operate.
All services, except bike-taxis, will get up to five years to phase out fossil fuel-based vehicles and switch to EVs. Bike-taxis will, however, once legalised can only be electric-powered, the policy mandates.
However, officials involved in drafting the policy said this statute may hit a roadblock with service providers. “We are waiting for the draft to be released for public opinion, after which changes may be made if required,” said an official not authorised to speak to the media.
According to the policy, the fares for on-demand services will be controlled and monitored by the transport department, indicating that surge prices, currently uncontrolled, may be regulated.
It will also be mandatory for aggregators to install a panic button and integration with 112 (Delhi Police) for emergencies. The scheme also includes a mechanism to ensure timely consumer grievance redressal by service providers, enforcement of vehicle fitness, pollution control, and validity of permits.
“As a new business opportunity, the scheme ensures that all bike-taxis and two-wheeler renting services in the city shall only be via electric two-wheelers. These provisions are in line with the Delhi EV Policy 2020,” a statement from the Delhi government said.
These mandates only apply to an incremental percentage of new on-boarded vehicles over the next four years to prevent major disruptions for businesses, said officials. For instance, 5% of all new cars purchased need to be electric in the first six months of the scheme kicking in. Four years from its notification, however, all new commercial two-wheelers and three-wheelers will need to be EVs. Similarly, after five years, all new commercial four-wheelers need to be EVs.
Cab drivers, however, said that there is hardly any safety net specified by the government for drivers and the policy only favours the aggregators, giving them a legal framework to operate as they like.
“The cab aggregators take around 20% commission and 5% tax. So, from the entire fare, 25% goes to the aggregator, which is a huge loss for drivers who are still using gas or other fuels. The government has only legalised the exploitation by framing this new scheme,” said Kamaljeet Gill, Sarvodaya Driver Association of Delhi.
Additionally, bike-taxi riders said that such policies have driven them out of work in the Capital and they had to look for work in cities outside of Delhi.
“We make a minimal amount during the day and many of the bike-taxis are run by people who have bought second-hand vehicles. This new policy will only mean that we will have to spend extra from our pockets and get a new vehicle to be able to work in Delhi. Because of such policies, many of us are working only in Noida and Gurugram,” said Hemant Singh, a bike-taxi rider registered with two aggregators.
Based on the polluters pay principle, the scheme will make the license fee for a conventional vehicle significantly higher than an electric vehicle. This will make the per-vehicle license fee for a conventional vehicle significantly higher than an EV. Secondly, all license fees and penalties under the scheme shall also be credited to the State EV Fund, which in turn supports all EV promotional activity.
HT reached out to cab aggregators Ola and Uber for comments on the move by the Delhi government, but no response was available.
Earlier in February, the Delhi government had asked bike-taxis to be off the city roads. The government said that a challan of ₹5,000 will be imposed the first time and ₹10,000 for the second time if found operating within Delhi.
Experts said that making all bike-taxis electric will provide a framework to aggregators that only EVs will eventually operate in Delhi.
“The daily run of commercial vehicles like cabs or bike taxis is about 4-5 times more than private vehicles. So, their emissions are also much higher. Various studies have also shown that commercial two and three-wheelers contribute highly to pollution levels in Delhi. It is, therefore, essential to electrify commercial vehicles. In the two-wheeler segment, there are various EV models already available, and the Delhi government subsidy is also high. However, a phasing out time is required for four-wheelers where enough options are not available yet,” said Amit Bhatt, managing director (India), International Council of Clean Transport (ICCT).