Economy

Here's why carpooling services may soon be banned in Delhi

Here's why carpooling services may soon be banned in Delhi”

A huge number of people in Delhi save their hard-earned money by availing shared cab rides.

Expenses for Delhites who depend on app-based cabs for travelling may soon increase as the Delhi government wants them to do away their pooling and sharing options.

At the core of the issue, said officials, is the difference between the conditions of contract carriage and stage carriage permits.

"However, such operations don't come under the present legal framework as taxis are only allowed to be hired from one point to another and can not pick and drop passengers", india.com quoted a government official as saying. "The scheme, which is a regulatory framework for cab services in the city, will ban shared cab rides as it is not compatible with the Motor Vehicles Act, 1988", PTI reported quoting a source. Buses, however, ply under stage carriage permits which allows passengers to board and disembark at multiple points.

Experts argue that it is not a ban on the ride-sharing cabs but an amendment of the archaic laws that is the call of the hour. "However, such operations don't come under the present legal framework as taxis are only allowed to be hired from one point to another and can not pick and drop passengers", a government official said.

It will, however, be the first opportunity allowing the registration of certain prominent cab aggregation services in the Capital two years after a Ministry of Home Affairs (MHA) directive to shut them down following the rape of a private executive aboard a cab in November, 2014.

The official further said, "We plan to regulate operations of app-based cab services".



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