October 13th, 2015
Source and Image: wsj
After much lingering on the issue of Ride-Hailing app services being legal, The Ministry of Road Transport issued the new guidelines for them.
As per the guidelines, ride-hailing companies must obtain licenses to operate, but the normal regulations like minimum parking space, fleet size is not applicable to them, unlike taxi services.
It is a welcome move and a boost for Uber and Ola as Uber Technologies Inc. is an American international and was wrangling for almost a year in the national capital over the legal status. And Ola had sought regulatory recognition and approval after their services were ordered halted by authorities in Delhi in December over rape allegations on one of their drivers.
The two giants Uber and Ola are still battling in the court over licensing requirements. They are also trying to deal with a ruling by an environmental tribunal that drivers in Delhi must operate cars fueled with natural gas and not petrol or diesel.
Overall both the companies are happy to see it moving further leaving some disappointment in nitty-gritty in the operation like the provision of a requirement for vehicles to have emergency buttons.