The Government of India has taken an important decision regarding ride hailing services like Ola and Uber. According to the new rule, vehicles running in app based cab services can now be used commercially only for 8 years from the date of registration. Even if the vehicle is technically fully fit, it will be considered retired from commercial service after completion of 8 years. This rule will be implemented across the country.
In order to improve road safety and curb urban pollution, the Ministry of Road Transport and Highways has imposed an age limit on vehicles that can be used by an aggregator, including Ola, Uber and Rapido. The vehicles will be allowed to run only up to 8 years from the date of registration.
Passengers will get new, modern and safe vehicles
The biggest benefit of this decision will be to the passengers traveling by Ola-Uber. Now they will get new, modern and safe vehicles instead of old and unsafe taxis. Old vehicles often do not have the necessary safety features, which raises questions on the safety of passengers. Apart from this, old vehicles cause more pollution. Due to the new rule, there will be newerer vehicles on the roads, which is also likely to reduce pollution.
Huge losses for drivers
While this decision is beneficial for passengers, it can bring huge losses for drivers. Drivers who have recently bought a new vehicle and have yet to pay its EMI will now have to replace the vehicle within 8 years. Without government assistance, the financial condition of such drivers can become weak and some may be forced to stop taxi service.
20% taxis are more than 8 years old
According to data from Ola and Uber, about 20% of the taxis on these platforms are more than 8 years old. Now they will either be replaced, or kept for personal use.
Many drivers may turn to EV taxis
Due to the new rules, many drivers may turn to EV taxis. To promote EVs, the government also provides subsidies and tax exemptions in many states. This can make this option economical in the long term.
Prakash Kumar Pandey