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Uber, Ola to get licenses under new governing law

Taxi aggregators Uber and Ola cabs plan to get licenses to comply with latest government guidelines reported the Economic Times.

Since the two start-ups are not governed by the Motor Vehicles Act 1988 or any of the state acts on vehicles, the Ministry of Road Transport and Highways last week released governing regulations for app-based taxi aggregators, reported Livemint.

The guidelines clarify that “IT-based aggregators” are different from traditional offline taxi operators and that state governments should formulate specific policies to regulate their licencing, compliance and liability. The guidelines, which are not binding but directive, also state that these aggregators should have a mandatory 24X7 call centre and a helpline number connecting to a grievance redressal officer.

The necessity of bringing these companies under law was first felt when a case of a Uber cab driver raping his client came up in 2014, after which uber was banned in Delhi. There have been a series of litigations at the Delhi high court regarding the legal status of the start ups like Uber and Ola.

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