India: Ride Sharing Companies May Be Banned In Delhi

There are some bad news for people who like to use ride sharing services in Delhi as they might soon be banned from operating. The transport department of the city is likely to ban the ride sharing services as they are not legally permitted.

Ola and Uber, some of India’s most popular ride sharing companies, might be affected by the transport department’s decision. A government official explained that in principle, they are in favor of ride sharing services as they not only provide an affordable option but also reduce the number of vehicles out on the road. But the official added that such operations don’t come under the present legal framework. The draft scheme has not been completed by the government but it appears that ride sharing services will not be able to operate in the city when it is done. The official finished by saying that they plan to regulate operations of ride sharing services.

The problem for Ola, Uber and many other companies is that the current laws don’t allow drivers to drop and pickup passengers unless they have a permit. Taxi drivers have permits to take passengers from one point to another. Taxis aren’t allowed to drop or pick up multiple passengers along the way. Only public transportation, such as buses or trains, are allowed to pick up and drop passengers across the city.

The latest change to the taxi scheme was two years ago but the government is now looking to make other changes. Ride sharing companies have grown over the last few years and their transportation services are now some of the most popular across the world. The taxi scheme is more bad news for ride sharing services, especially Uber, which has faced bans in Brazil, France and Italy. The company has also had to suspend its services in some cities due to regulations and long battles with governments.