Ridesharing companies breach registration rules

Ridesharing companies are not following the government rules that vehicles are allowed to engage in services only after a year of their registration.

Instead, they are allowing vehicles to register for mobile apps indiscriminately.

The violation is mostly seen in terms of motorcycles. Some of them have begun offering ride sharing services just a day after they received registration numbers from Bangladesh Road Transport Authority (BRTA).

Some private cars are also doing the same when they provide ridesharing services.

But most of the drivers said they were unaware of the restriction. The ridesharing companies never mentioned anything when the drivers registered their vehicles to the apps, they said.

Pathao, a ride sharing company, has already signed contracts with a bank and motorcycle sellers to enable the drivers to buy motorcycles in instalments.

Photo: Collected

The government drafted a policy in 2017 after the ridesharing services became popular in Dhaka, with provisions of disciplinary actions, including termination of services, if they violate regulations.

Personal motorised vehicles cannot take part in ridesharing until a year after their registration, according to the policy.

The policy also says a motorcycle or car must be a personal asset and must be registered for at least one year in order to engage in ridesharing services.

A motorcycle bought on credit is a possession of the bank and not the buyer, who will only own it after repaying the debt. In that case, providing ridesharing services with a vehicle owned by another person or organisation is against the policy.

Drivers in the city providing ridesharing services say they were unaware of this restriction.

“I bought my motorbike two months ago and started to offer rides a week later. They never asked me how old my motorbike was when I registered in the app. They only asked for proper papers under the driver’s name, like the national ID and driving licence,” said Hemayet Khan, a driver who started offering rides and is now earning an income from it.

Mosharraf Hossain, a motorcycle rider, said he has been offering rides on his Pathao app since he registered his motorcycles on October 21.

“The company wants new motorbikes, so do the passengers. That is why I sold the old vehicle and bought the new one,” he said.

“I don’t know about the policy. I think Uber or Pathao would have told us if it was the case. I only use their apps for my rides,” said Mahmudul Hasan, another motorcycle driver.

Pathao has been paving the way for using company-owned motorcycles for ridesharing although the policy requires personally-owned vehicles for ridesharing services. The company even has a ‘bike financing programme’ to buy motorcycles for riders.

Pathao signed a contract with Niloy Motors and with Runner Automobiles. The company also signed a contract with BRAC Bank to help the bikers buy motorbike on credit.

The drivers are already offering rides after buying motorbikes from Niloy Motors, said sales officials, bdnews24.com reported.

They have received a ‘good response’ from the bikers said an official of Niloy Motors on the condition of anonymity.

“The company owns the motorbike if it is bought in instalments and the ownership is transferred to the driver after paying the entire amount,” he said.

“According to our policy, a vehicle can be used in ride sharing only after a year of its registration and it must be a personally owned vehicle,” BRTA Director Nurul Islam said.

“It is clearly written that a vehicle can be enlisted with a ridesharing company after a year of its registration. The one registered today cannot offer rides tomorrow. Now if you ask about penalties, then we should note that the companies have applied to us for registration, but we are not registering them. There are many loopholes like this.”

Uber did not make any direct response but said it is constantly evaluating its services to ensure proper and affordable service to its passengers. Pathao did not make any statement about the situation when asked.

Maliha M Quadir, managing director of Shohoz.com, did not respond to a query on the issue either. Kazi Omar Ferdous, chief operating officer of Obhai, said it is willing to follow the government’s regulations.

“Obhai is working with the government agencies to acquire the enlistment certificate according to the ridesharing policy and provide easy and highest services to customers.”