Ride-hailing companies have raised concerns over Punjab’s plan to require district- and platform-specific permits for app-based transport services, warning that the system could increase costs and create operational problems for thousands of drivers.
The provincial government has formally brought ride-hailing services under the Motor Vehicles Ordinance 1965. Under Section 44B, vehicles operating through ride-hailing platforms may be required to obtain separate permits for each district and platform.
Industry stakeholders argue that the proposed framework does not reflect how app-based transport services operate.
Ride-hailing drivers do not follow fixed routes and generally accept bookings without knowing the passenger’s destination in advance. A driver may therefore cross several district boundaries during a single shift.
Drivers who work across multiple districts or use more than one ride-hailing app could be required to obtain and renew several permits.
“A driver operating in two districts on two apps could require four permits, each involving separate fees and paperwork,” a ride-hailing company executive said.
The executive warned that the additional regulatory and financial burden could further reduce the earnings of full-time and part-time drivers already facing higher fuel, maintenance, insurance, and vehicle financing costs.
The issue could be particularly significant in major urban centers, where drivers regularly travel across administrative boundaries while completing trips.
Ride-hailing firms said they support regulations aimed at improving passenger safety, vehicle standards, driver accountability, insurance coverage, and taxation. However, they believe the permit system should be designed around the flexible and cross-district nature of digital transport services.
The industry has proposed a single provincial permit linked to either the driver or the vehicle, supported by a centralized digital registration system.
“This regulatory initiative is welcomed,” the executive said, adding that the permit framework should be reviewed to prevent unnecessary costs and geographical restrictions.
The Punjab government maintains that regulating the rapidly expanding ride-hailing sector will improve passenger safety, accountability, and oversight.
Via: Dawn
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