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ARTICLE · 14 NOVEMBER 2022

Are Cab Aggregators Staring Down The Barrel Of A Gun In India?

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Cab aggregators (Aggregators) in India are currently facing a battle on three fronts. First, is with the drivers who are heavily unionised, and as a result have significant influence.

IndiaCompliance

Cab aggregators (Aggregators) in India are currently facing a battle on three fronts. First, is with the drivers who are heavily unionised, and as a result have significant influence. Their grievance primarily relates to a lack of transparency in the fares, lack of margin, and liquidity issues. Second, is with the customers who are disgruntled with the lack of customer service caused due to unwarranted cancellation, safety concerns and poor maintenance of vehicles. Third, are the authorities (often the state traffic police) who are unable to reconcile the Aggregator model with the existing motor vehicle laws.

In order to resolve these issues satisfactorily, the Ministry of Road Transport and Highways of the Government of India issued the model Motor Vehicles Aggregator Guidelines on 26 November 2020 (Model Legislation). The Model Legislation is intended to act as a guiding framework for the state governments to frame laws applicable to Aggregators in their

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