Crackdown on illegal 'rent-a-car' services including Zoomcar, Minister vows strict action

Kerala Transport Minister KB Ganesh Kumar has announced stringent action against unauthorised 'rent-a-car' services, including those offered via platforms like Zoomcar. Despite practical challenges in conducting comprehensive inspections, the minister assured that action would be taken whenever violations are reported.

The minister stated that services operating without proper licences, including the Zoomcar app, have been identified. He emphasised that a valid rent-a-car licence and black number plates are mandatory for such vehicles.

According to an investigation by Manorama News, Zoomcar has been operating without a licence since 2019, despite a court order to cease its activities. Thousands of vehicle owners associated with the app were found to be complicit in severe legal violations. The High Court had earlier ruled that such unauthorised operations constitute a cybercrime and called for decisive action. The Ernakulam RTO also submitted a report recommending the app's ban.

How the system works

Typically, an individual planning a trip posts the details of their vehicle's route and availability on the app. Other users who need to travel along the same route can book a seat in the vehicle. These trips can be within the state or interstate, allowing users to travel without relying on public transport or traditional taxi services. Lower costs often attract users to these services.

This service, known as "carpooling" or "ride-sharing," appears convenient and affordable but raises significant legal and safety concerns. The Motor Vehicles Department has noted the rise of illegal taxi operations disguised as ride-sharing apps. Passengers travelling through these platforms are often not covered by safety measures or insurance.

Using these apps, individuals can post details about their planned trip, including available seats, dates, and routes. An account can be created with a simple email ID and mobile number. Interested passengers book the trip, paying a per-kilometre fee (usually around Rs 3) upfront through the app. The fare is transferred to the vehicle owner or the individual who posted the trip only after its completion.

Key concerns

According to Motor Vehicles Department officials, conducting trips in private vehicles for monetary gain is a violation of permits as per Section 66 of the Motor Vehicles Act. Even if the vehicle owner is present, accepting money for trips in private cars constitutes a breach of the permit system.

Safety and insurance coverage for passengers in these vehicles are often non-existent. In the event of an accident, insurance claims may be denied due to permit violations, leaving passengers vulnerable. However, officials highlighted the difficulty in identifying such vehicles and enforcing regulations.

According to C Shajo Jose, State Secretary of the Yellow Cab Drivers’ Society, the practice of illegal carpooling is severely affecting the livelihoods of authorised taxi workers.

“Carpooling trips are being conducted at a rate of Rs 3 per kilometre. However, there is currently no legal provision for using non-permitted vehicles to ferry passengers. These unlawful operations often come to light only when such vehicles are involved in accidents or when passengers face harassment. The Ernakulam–Thrissur route is a hotspot for such activities,” he said.

Shajo added that private vehicles without proper permits are not allowed to operate as taxis under the law. “The government must urgently regulate these carpooling apps and their operations. The Motor Vehicles Department should act swiftly to identify and crack down on these illegal taxi services,” he urged.