“Ola, Uber to Phase Out Vehicles Older Than 8 Years; New Rule to Apply Nationwide”
New Delhi, 7 July – (www.deccanlive.com): Now, cars older than 8 years will not be allowed to operate as taxis on platforms like Ola and Uber. Yes, even if the car is in good condition, after 8 years it will be considered retired for commercial use.
The Indian government has announced a new rule for ride-hailing services like Ola and Uber. According to this rule, a taxi can only run for 8 years from its registration date. After 8 years, it will not be allowed for commercial use, even if the vehicle is perfectly fine.
This rule will apply across the whole country and is expected to affect thousands of drivers and millions of passengers.
Problems for Drivers
- Many drivers bought their cars on loan, and are still paying EMIs. Retiring the car after 8 years will create financial pressure.
- Fuel prices, app commissions, and tough competition have already affected earnings.
- Without government support or help schemes, many drivers may be forced to stop driving.
What Will Happen to Old Cars?
- As per Ola and Uber data, about 20% of taxis are older than 8 years.
- These cars must be either replaced or used only for personal use.
- These older cars can be sold in small towns as private vehicles. This will also boost the second-hand car market.
What Could Be the Solution?
- Automobile industry groups are asking the government for:
- Special exemptions
- Scrappage incentives
- Easy loan schemes
- Fleet companies can rent or lease new vehicles to drivers. This can reduce the financial burden and introduce modern taxis on the road.
Will This Promote EVs (Electric Vehicles)?
- If drivers need to buy new cars, electric taxis can be a cheaper and future-ready option.
- Many states already offer EV subsidies and tax benefits.
- Ola and Uber have already started testing electric cars in some cities.
