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Last Updated : Sep 27, 2018 01:29 PM IST | Source:

Gujarat govt may cap Uber, Ola fleet at 20,000 each: Report

As of now, the proposal is just a draft. The government will evaluate suggestions and objections from stakeholders before finalising it

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The Gujarat government may cap the number of Ola and Uber cabs in the state at 20,000 each as it is considering a proposal by the state's transport department seeking to limit taxis under app-based aggregators, The Economic Times reported.

"The aggregator shall not attach more than 20,000 vehicles under one licence and only one licence shall be issued to a company or an aggregator," the Posts and Transport Department of Gujarat said in a draft proposal.

If implemented, the move could impact the business of app-based aggregators such as Ola and Uber. Uber, however, said that it would work with the state government on the matter.


"We remain committed to engaging the government and working with relevant authorities to enable regulations that can enhance the future of urban mobility in Gujarat's mega cities," an Uber spokesperson told the paper.

The company said it would continue to work with the local administration to bring in smart mobility and ride-sharing solutions to help curb congestion and last-mile connectivity problems in Gujarat.

Safety issues, including attacks on passengers elsewhere in India, had prompted the transport department to come up with the proposal, a senior Gujarat government official was quoted as saying.

"Our main attempt is to regulate this kind of service so that Ola and Uber would come under the net of rules and to bind them with conditions of the licences and make them follow the rules," the official told the paper.

As of now, the proposal is just a draft. The government will evaluate suggestions and objections from stakeholders before finalising it, the official reportedly said.

In Gujarat's top four cities, cabs run by aggregators number 8,000-10,000, the newspaper reported.

The draft Gujarat State on Demand Transportation Aggregator Rules, 2018, allows the department to suspend or even cancel licences if operators fail to comply with rules.

It proposes that the licensing authority will also be allowed to suspend permits for 10 days-6 months or cancel them if "any driver of a taxi operated by the licensee violates any requirement or condition of the rules or a passenger complaint of misbehaviour and misdemeanour on the part of the driver or the licensee."

With the upper limit set at 20,000 cabs per company, if taxi aggregators wish to operate more than 10,000 cabs in the state, they can get licences by paying a fee of Rs 10 lakh and a security deposit of Rs 25 lakh, according to the proposal.

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First Published on Sep 26, 2018 01:07 pm
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