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Delhi Government’s City Taxi Scheme, 2017 may soon ban the shared cab ride services by Ola and Uber. The services are found to be in violation of the Motor Vehicles Act, 1988. Known as OlaShare and UberPool, these services offer up to an 8km ride for as low as Rs. 49.

These app-based cab sharing facilities are quite popular in Delhi-NCR. According to Uber, UberPool alone accounts for more than 30% of all Uber rides in Delhi. But this service is not legally right as per the government.

“The scheme, which is a regulatory framework for cab services in the city, will ban shared cab rides as it is not compatible with the Motor Vehicles Act, 1988,” said a source in the AAP government.

Motor Vehicle Act, 1998 Violations

The main issue with these cab services is the type of permit. Most of the taxi services that operate point to point journey are granted the contract carriage permit. The app-based cab services like Ola and Uber are also granted the same contract carriage permit.

And, according to the Motor Vehicles Act, 1988, any cab or taxi having a contract carriage permit cannot stop and allow additional passengers to join in an ongoing journey.

Only the vehicles with stage carriage permit have the permission of making a stop and allowing additional passengers in a point-to-point journey. Some select transportation services such as school and public buses have been granted with the same permit.

‘’The Act has no provision to allow shared rides by cabs that operate under contract carriage permits. Such rides cannot be allowed unless there is a suitable amendment to the Act,” said the same source.

There is no doubt that shared cab services like Ola Share and UberPool are cost effective and reduce traffic congestion on the roads. So, several activists and customers support these pool services.

The cab services will be Delhi regulated under the City Taxi Scheme, 2017 formed by the AAP Government. However, the official didn’t say anything about the exact content of the draft scheme. As of now, Uber is said to be in talks with the Delhi government to sort out the issue.