New Delhi: The government has taken a big step on cab services like Ola and Uber and implemented a new rule. Now these app-based taxis will be allowed to run commercially only for 8 years from the date of registration. After this, even if the vehicle is technically fit, it cannot be used as a taxi. This rule will be applicable all over India, which is likely to affect the employment of thousands of drivers and the travel of millions of passengers, reports Dynamite News correspondent.
What will be the benefits to the passengers?
New and safe vehicles will be available: Old taxis often do not have essential safety features like airbags and ABS. With the new limit, passengers will now get safer and cleaner vehicles.
Reduction in pollution: Old vehicles emit more smoke. Now taxis that emit relatively less pollution will run on the roads.
Drivers’ problems will also increase.
Financial burden: Many drivers have bought vehicles on loan, and their EMI is still going on. Retiring the vehicle in 8 years can be a big financial crisis for them.
Rising costs: Already the rising prices of petrol and diesel, high commission of app companies, and competition are affecting the income of drivers. If the government does not bring any relief scheme, many people may have to stop driving taxis.
What will happen to old taxis?
According to data from Ola and Uber, about 20% of taxis are older than 8 years. They will either have to be replaced or kept for personal use.
Old taxis can be sold as second-hand cars in small cities, which will benefit the used car market.
Possible solutions
Scrapping and loan facility: Automobile sector organizations have demanded incentives and easy loans from the government under the scrappage policy.
Vehicles on lease: Fleet management companies can provide vehicles to drivers on rent or lease, which will reduce the pressure to buy new vehicles.
Promotion of EV (Electric Vehicle)
Since drivers have to buy a new vehicle, electric taxis can be a better option.
Many states offer tax breaks and subsidies on EVs. Ola and Uber are already testing EV taxis in some cities.