Draft policy for delivery, cab firms in final stages

The new rules, in the works since 2017, are now almost finalised and are likely to be shared by chief minister Arvind Kejriwal in an announcement this month

The Delhi government is likely to make specific approvals, driver badges and customer verification mandatory and and call for greater use of electric vehicles by app-based cab services such as Uber and Ola and delivery businesses such as Zomato and Swiggy, according to the city’s long-awaited policy on the matter, which is expected to be unveiled soon.

The draft policy has been prepared under Delhi Motor Vehicles Rules, 2023. (HT PHOTO)

Such services work in a regulatory vacuum at present and the tech companies that run them are not required to follow specific rules that conventional cab services are required to. The new rules, in the works since 2017, are now almost finalised and are likely to be shared by chief minister Arvind Kejriwal in an announcement this month.

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. The policy could also recommend finalising a base fare for the aggregators, and the administration is considering mandating uniforms for drivers and delivery people.

After it is finalised, the policy will be put up before the state cabinet for approval, following which the file will be sent to the lieutenant governor for consideration and approval. After a nod from the LG, the rules will be notified and will become binding on the aggregators.

At least two officials aware of the development said that the draft policy is likely to be put into the public domain for suggestions and feedback from the people. “Delhi has among the largest number of ride aggregators and delivery aggregators, whose services are used by a large number of people. However, they are beyond the regulatory framework of the Delhi government, even though they operate in the Capital, because necessary rules have not been framed to regulate them. Now the rules are in the final phase of being implemented,” said one of the officials.

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 purpose of the exhaustive task has been to ensure passengers’ safety, get their grievances redressed, and check the impact of the increasing number of aggregators’ vehicles on the traffic and the environment,” said the official.

Currently, the transport department does not know how many vehicles are engaged with ride-hailing companies, or how many are operating under the door-to-door delivery ecosystem. “After the policy is implemented, these companies will have to share the fleet and drivers’ details with the government so that the government is aware about the number of the vehicles operating in the sector,” said the second official.

Decarbonisation of the fleet is also likely to be part of the upcoming policy. “The aggregators will switch over to an electric fleet in a phased manner. They will be given a target to switch all their vehicles to electric by 2030,” said the second official.

The notification of the policy will also likely make bike taxis legal in the Capital. In February, the transport department asked cab aggregators to stop bike taxi services on Delhi’s roads because their plying is in violation of the Motor Vehicles Act, 1988.

HT reached out to cab aggregators Ola and Uber for comments on the move by the Delhi government, but no response was immediately available.

“Under the leadership of chief minister Arvind Kejriwal, Delhi is going to be the first state to make rules for regulating the aggregators providing passenger transport and delivery services. The draft policy has been prepared after exhaustive experts and stakeholder consultations, and will get the final shape after we put the draft policy in the public domain and get suggestions from the people,” said transport minister Kailash Gahlot.

The Delhi government currently only regulates the fares of metered taxis and autos. The decision to regulate or not to regulate the fare of aggregators will be taken by the government, one of the officials quoted above said, asking not to be named.

“Cab aggregators have played an important role in offering public mobility services, while also creating a significant number of employment opportunities. In Delhi, transport emissions are a major contributor to local pollution. The ride-hailing and delivery service vehicles cover more distance than personal vehicles and hence they also have a higher emission per vehicle. Therefore, it is imperative to prioritise the electrification of the fleet for these aggregators to curb pollution. It is also important that the Delhi government creates a favourable ecosystem for rapid electrification of these vehicles,” said Amit Bhatt, managing director (India) of the International Council on Clean Transportation.