Nitin Gadkari's app-cab reform: Drivers to get care, customer is the king

India Today

3 hours ago

In India's booming app-based cab economy, often the only thing that matters for the consumer is not the technology or the car but the most-ignored cog in the wheel: the driver. Whether you step out grinning or groaning from an Ola/Uber ride depends on that crucial factor—how was the driver?Now, the Union ministry of road transport and highways, under Nitin Gadkari, seems to have finally accepted this elementary truth more than ever before. The newly revised Motor Vehicles Aggregator Guidelines 2025, published recently, take into account mental health reviews for drivers as well as how much their work schedules can be stretched, among other things. For an industry defined by long hours, fickle pay and frequent confrontational customers, it can be a game changer.advertisementThe new guidelines, revised from an earlier set in 2020, say drivers will also get better insurance cover: Rs 15 lakh as term insurance and Rs 7.5 lakh for health, a big jump from the earlier Rs 10 lakh and Rs 5 lakh, respectively. It's a long overdue correction for a workforce that hasn't had access to the safety nets available to employees in the more formal sectors.The bottomline: when drivers are safer, healthier and more secure, they are better able to serve customers; the roads get safer too. This has been underpinned by a growing acceptance within government that it is the people, as opposed to the infrastructure, that shape passengers' experience.
That said, the refreshed and forward-looking 2025 regulations are not exactly mandatory. Transport may be on the Concurrent List of the Indian Constitution, but there's precious little the Centre can do to compel a state into legislating on transport matters. So it would be for each state government to either accept or adjust the recommendations. BJP-ruled states will probably fall in line, but others may hesitate, stall or even ignore the changes. It is, therefore, a wishlist with all the good intentions.But there are several good upgrades in the guidelines as well, such as the way data is to be treated by the aggregators, as per the new Digital Personal Data Protection Act, 2023. Aggregators are now required to keep for a finite time—mininum three months, maximum two years—data generated by the Indian app on Indian servers and in compliance with the Indian data laws. It is part of a shift away from casual data-governance practices that used to be the norm, especially in the gig economy.There's also a green nudge. Previously, states had the option to offer incentives for electric vehicles purchased within aggregator fleets. The rules now require action: at least 5 per cent of an aggregator's fleet must be electric within the first year of the notice, and that number must double in the second year. It's an aggressive play in a sector that has been slow to see EV adoption, largely because of the erratic charging infrastructure and higher out-of-pocket costs. Also, the demise of BluSmart has been a setback.Transparency may finally have some bite. For instance, customers can now know the break-up of fares before booking their rides, ending opaque pricing that often left riders in the dark. If it takes the driver more than five minutes past promised time, riders will have a clear right to cancel the ride without penalty. Also, passengers are meant to be compensated if a driver cancels for no good reason.advertisementThe training and safety protocols are improved as well. The old guidelines addressed gender sensitisation only. But the new ones say drivers have to learn about sexual harassment and how to protect the vulnerable—children and seniors and women. The guidelines stress there should be a clear way to escalate complaints in the system.Yet the gulf between policy and practice remains wide. Aggregator platforms, known for finding ways to sidestep worker protections in the gig economy in the name of technological neutrality, are likely to slow down on implementing the more stringent rules. And unless state governments have the political will for enforcement, these may well remain on paper.But all in all, by making the driver the centerpiece of the ride-hailing equation, the government is signalling a new norm. While it could still be a bumpy ride, a lot of the potholes look set to be filled should the states play ball.Subscribe to India Today Magazine- EndsTune InMust Watch