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Govt softens stance on cab-hailing apps; will not ban Uber and Ola

The Indian government has ruled out banning cab-hailing apps like Uber and Ola, but will be imposing conditions to make their operations safer, reports ET. The transport ministry is also likely to issue an advisory within the next three weeks to all state governments to regulate these services under the Motor Vehicles Act. According to the Ministry, the Government wants to promote IT based taxi companies and not ban them. Government officials mentioned that the apps come within the purview of the Motor Vehicles Act as they are used to solicit services for transport, rejecting the idea that these services should be governed by the IT Act. Note that services like Uber and Ola do not operate taxi services and only act as aggregators, something we had pointed out in December. However the ministry’s current draft also includes the term…

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