The Ministry of Road Transport and Highways has proposed reforms to simplify the rules for governing cab rental businesses, promote ease of doing business and strengthen passenger safety.

 

Under the proposed reforms, operators will be allowed to offer cabs with or without drivers.

 

The minimum fleet requirement will be reduced from 50 to five vehicles, with at least 2 cabs per place of operation. The requirement for branches in five tourist cities is removed. 

 

The reforms also include a single electronic licence, valid across the State or Union Territory for a uniform fee. Approved places of operation may include airports, stations and bus terminals. It further added that licence grants and renewals have a proposed 60-day timeline.

 

Adding or removing cabs or places of operation has a 30-day deemed-approval mechanism. To simplify compliance, electronic VAHAN registers and automatic retrieval of vehicle data will be introduced.

 

Passenger safety will be strengthened through mandatory location tracking devices and first aid kits in cabs. Child restraint systems will also be permitted as an optional facility.

 

Operators will be required to provide round-the-clock grievance support, emergency repairs and towing services. 

 

The proposed reforms mentioned that operator-provided drivers would require police verification, while specified serious offences may reduce operator’s licence validity. 

 

Operators will also be given an opportunity to rectify non-material violations before suspension or cancellation of their licences is considered.

 

The Ministry said the proposed reforms will expand rental choices for passengers, improve safety and lower entry barriers for smaller businesses, creating more employment opportunities.