‘Uber Commute’ illegal: Taxi drivers

Hyderabad: The Telangana State Taxi and Drivers joint action committee has opposed Uber’s new service, Uber Commute, a private car pooling service, as it directly contradicts the Motor Vehicles Act, 2019.

Uber has launched the new service through its app, Uber Commute, in Hyderabad. The notification for this service was published on the Uber website on January 4, 2019. According to the website, ‘Uber Commute allows you to turn your own car into an Uber ride for fellow Hyderabadis, without needing a commercial driving licence or a yellow number plate.’

The service is available only in some areas. Shaik Salauddin, president, Telangana Four Wheeler Drivers Association said, “Over 35,000 drivers would like to draw your attention to this illegal service of Uber Commute which is in direct contravention of the Motor Vehicles Act, 2019.”

Uber charges a commission on Uber Commute rides in private vehicles. This is a gross violation of the Rent a Cab Scheme, 1989, of Andhra Pradesh, according to which ‘No person shall engage himself in the business of renting a motor cab under this scheme without licence.’ Licence here refers to the exclusive licence required to ‘engage in the business of renting of motor cabs to persons desiring to drive the cabs for their own use’.

He further added that the Motor Vehicles Act mandates that taxis/cabs pay annual taxes and permit charges to ferry passengers.

Private car owners pay a one-time tax for life when the car is bought. So this will hurt state revenue that is collected from commercial vehicles engaged in ride hailing and sharing services.