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After being strict on the working of cab hailing apps like Uber and Ola, the Indian govt. has ruled out banning cab-hailing apps but further added that will be imposing conditions to make their operations safer.

“The transport ministry, headed by Nitin Gadkari, is likely to issue an advisory within the next three weeks to all states which will clearly state that these services have to be regulated under the Motor Vehicles Act but there is no case for banning them. The government wants to promote IT-based taxi companies,” ET said.

The top executives of Uber and Ola met Gadkari and other senior officials in the road transport ministry to discuss in regard to the threats imposed by various state govt on the working of these apps.

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“There has to be a proportionate amount of check and responsibility. We don’t want a ban since competition has to increase. IT is adding a lot of value to the system,” the ministry official said.

The government officials further said that these will come under the Motor Vehicles Act “Uber is ready to accept all conditions, but Ola does not want to be clubbed with the rules for radio taxis,” the official added.

Since the beginning both Uber and Ola have been making point that they donot operate a taxi service but only acts as an aggregator.

The advisory is being issued as an interim measure till a new Motor Vehicles Act is finalised.

Timeline

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