Uber drivers’ intensified strike notwithstanding, the Telangana government is yet to formulate a regulatory framework to rein in transportation technology aggregators like the Netherlands-origin company.
On the contrary, a Memorandum of Understanding (MoU) signed between the State government and Uber, in the first week of July, states that within four weeks of signing the MoU such a regulation should be drafted and passed.
As per the MoU, the State government was to identify, draft and pass a regulatory framework for on-demand transportation technology aggregators “which permit ridesharing (peer to peer transportation using private vehicles)”. The framework should have aimed at regulating operations of on-demand transportation technology aggregators like Uber and drivers registered on such platforms. The regulatory framework was also meant to ensure protection of riders.
Uber’s operations in Hyderabad and the decision to set up a 50 million USD facility in the city had led to objections earlier as the company’s operations did not have Road Transport Authority’s permit to operate here.
However, the MoU allows Uber operations in Hyderabad and in yet-to-be identified zones, subject to a regulatory framework that is to be drafted. “The State will have to refer the existing frameworks of regulation put out by the Government of India before it forms its own regulations,” said an RTA official, on condition of anonymity, adding that the regulation will soon be in place. However, as per a Right to Information (RTI) response procured by activist Rakesh Reddy Dubbudu from Union Ministry of Road Transport and Highways, it was clarified that GoI has not sent any advisory to the State government for regulation of app-based taxi services.
What the MoU entails?
The agreement between the State government and Uber is, however, expected to bring in short-term relief in terms of employment and investment. As per the MoU, 2,000 drivers who hail from marginalised sectors of the society, including religious minorities, women, deprived castes and tribes, will be linked to the Uber platform by the end of 2016.
The State government through its Telangana Academy of Skills and Knowledge (TASK) is expected to give training to potential candidates from marginalised sectors at subsidised rates of 50 per cent or belowof regular training costs. The State is also expected to assist such persons in procuring finance to purchase cars. Uber’s financial support for such candidates, as per the MoU, will however be based on “varying market dynamics” and “candidates use of Uber platform”. Uber is also expected to engage with T-Hub set up by the government to support innovation and investment by conducting hackathons and mentorship programmes.
The Telangana government was to identify, draft and pass a regulatory
framework within three weeks of signing the MoU with Uber
