Government Proposes Five-Car Minimum for Rent-a-Cab Licences

The government has proposed cutting the minimum fleet requirement under the Rent-a-Cab Scheme from 50 vehicles to five, with at least two cabs required at each operating location. The change is intended to let smaller entrepreneurs, local firms and start-ups apply for licences from next January. The draft also removes the requirement to maintain branches in five tourist cities and covers vehicles rented with or without drivers. The proposed 2026 scheme would replace the 1989 framework. It provides for a single electronic licence valid across a state or Union territory, with a uniform fee of Rs 25,000 and a five-year validity period.