Delhi Govt Notifies Vehicle Aggregator Scheme, Mandates 100% EV Transition By 2030

After months of consultations, the Delhi government notified the ‘Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023’ on November 29, setting the stage for comprehensive regulation and licensing of vehicle aggregators providing transport and delivery services, including cab and bike taxi operators and food delivery companies.

As per the Delhi government, the new scheme will apply to aggregators, delivery service providers and ecommerce entities operating within the National Capital Territory of Delhi.

The scheme mandates that the entire fleet of all the vehicle aggregators active in Delhi be 100% electric by 2030. Further, the policy adds that the aggregators will be permitted to operate EV-only bike taxi services, with operational guidelines outlined in the scheme.

The new vehicle aggregator policy also mandates strict standards for service quality to improve customer satisfaction.

The scheme covers aggregators with 25 or more vehicles, excluding buses, in their fleet, who use a digital intermediary such as an app or a website to connect with customers for their services, the Delhi government added. The state government also said all existing or new operators must obtain a licence within 90 days of the scheme’s notification.

These licences will be valid for five years, with an annual fee applicable. The aggregators will not have to pay the annual fee if they have an all-electric fleet. Further, the government is also offering a 50% rebate on annual fees for vehicles less than two years old.

Speaking on the development, Delhi Transport Minister Kailash Gahlot said, “There has been a long need for licensing and regulating the aggregators in the state for smoother operations for the people of Delhi. It is the first time in India that an aggregator guideline has also defined phase-wise electrification targets for these operators.”

It is pertinent to note that the government’s decision to only allow the operation of bike taxis has been strongly opposed by unions, saying it would render drivers jobless.

Meanwhile, Gahlot said that the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 is an initiative by the national capital towards achieving India’s net zero target of 2070. 

“Overall, this scheme is a step towards enhancing public safety and convenience of the Delhiites and features guidelines on vehicle cleanliness, driver behaviour, and timely resolution of customer complaints,” the transport minister added.

The Delhi government said that the scheme mandates service providers to ensure a phased conversion to electric mobility to reduce air pollution and enhance green mobility. On fines and penalties, it said the scheme is stringent in enforcing compliance, with violations attracting monetary penalties ranging from INR 5,000 to INR 1 Lakh per instance.