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Delhi Govt notifies Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023

Alongside future goals of EV conversion, the department also announced the return of bike-taxis in the city.

We missed this earlier: In a bid to ease the cloud of pollution looming over the city, the Delhi government on November 29, 2023 notified the Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 . During a press conference, Delhi Transport Minister Kailash Gahlot added that the department will also bring back two-wheeler taxis provided they are electric vehicles (EVs) only.

Gahlot said, “After 2030, all aggregators be it in transport, delivery service or e-commerce, will have EVs which will ease pollution concerns.”

What is the EV scheme? The Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023 regulates the vehicles operated by aggregators and delivery service providers (DSPs) and pushes these entities towards EVs. It focuses on regulation around licensing and its suspension, declaration of the vehicular fleet, compliance requirements for relevant entities, penalties and appeals.

During the conference, Gahlot said the scheme will be implemented in three categories of aggregators, mainly: Passenger transport, DSPs, and e-commerce platforms like Flipkart or Big Basket etc. The scheme will not be applicable for busses or aggregators that have less than 25 vehicles, regardless of whether they are two-wheelers or four-wheelers.

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Platforms to create city control rooms: Gahlot said operators will have to make their own command centre within the NCR region. If such a centre already exists outside the city then the transport department must get access to wherever the command centre exists.

Anticipated changes within 5 years: Within 90 days after the scheme notification, all existing and new operators will be required to get a license, said Gahlot. This license will be valid for five years with a nominal annual fee. However, there will be no fee levied on EVs.

Further, aggregators will have to convert their fleets to EVs within the next five years in a phased manner. Gahlot estimated there will be a 25 percent conversion in every year for 3- and 4-wheelers. This applies to all forms of vehicles except two-wheelers that are expected to be EVs only from the time of notification.

“This is the first time bike taxis will be allowed in a legal way. 2-wheelers can only be electric to be used as taxis,” said Gahlot, referring to the February government order banning the plying of bike-taxis.

Concerns regarding the scheme

Earlier, MediaNama had reported on industry comments regarding the scheme that included concerns about the licensing procedure and penalties. Organisations like the IAMAI asked that licensing requirement be done away with at least in the initial stages of implementation. Further it argued that DSPs and e-commerce entities should be exempt from licenses.

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Similarly, it argued that the policy should have an incentive-based approach rather than a penalty-based approach, which it seems to have retained. To read more about the concerns raised by industry members, click here.

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Written By

I'm interested in the shaping and strengthening of rights in the digital space. I cover cybersecurity, platform regulation, gig worker economy. In my free time, I'm either binge-watching an anime or off on a hike.

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