Guidelines For Cab Aggregators: Licensing And Pricing Controls!

The Ministry of Road Transport and Highways has issued Motor Vehicle Aggregators Guidelines, 2020 ("Guidelines") to regulate the cab aggregator market. The Guidelines have been issued vide notification S.O. 4251(E), in pursuance of Section 36 of the Motor Vehicles (Amendment) Act, 2019, which provides for amendment of Section 93 of the Motor Vehicles Act, 1988. The Guidelines will serve as a guiding framework for State Governments. Therefore, state governments whenever issuing the license to any cab aggregator may allude to the Guidelines. The key aspects of the Guidelines are:

(i) Regulating the aggregator: It seeks to regulate the cab aggregator market and defines "aggregator" as a digital intermediary or market place for the passenger to connect with a driver for the purpose of the transportation. An aggregator should have a registered office in India as a company registered under Companies Act, or, a LLP, or a Co-operative Society and has to comply with