Dhaka: The cabinet on Monday approved the draft of the Ridesharing Service Policy for legalizing the app-based transport services, like Uber, Pathao, in major cities with approval of the Bangladesh Road Transport Authority (BRTA).

Prime Minister Sheikh Hasina chaired the regular meeting at the PMO.

Briefing newsmen at Bangladesh Secretariat after the meeting Cabinet Secretary Md. Shafiul Alam said the policy has been framed to regulate the app-based transport services with private cars, motor cycles, jeeps, microbuses and ambulances.

‘Under the policy the fare of the ridesharing vehicles would not be more than the fare mentioned in the Taxicab Service Guideline,’ he said.

The policy suggested that a ridesharing company must take enlistment certificate from the BRTA and must have VAT and TIN certificates and in case of private and public limited company it must follow the rules of the Company Act.

BRTA will ascertain the service area of a ridesharing company taking into account the commuters demand, road network and the efficiency of the service.

According to the policy a company must have office in its service area and a certain number of transports in its fleet to start its business.

A company must have at least 100 vehicles for operating in Dhaka, 50 for Chittagong and 20 for other cities.

According to the policy, the ridesharing company will have to have an agreement with the transport owner ensuring rights of both sides and any party can withdraw from the agreement by giving one month prior notice.

The ridesharing vehicles must be parked in a specific stand in an area, the policy also said.

An owner of a transport will be allowed to provide only one transport for ridesharing while the vehicle must exhaust one year time after its registration to be eligible for ridesharing service.

Name of the ridesharing vehicles must be deposited in the BRTA web portal to allow the passengers to lodge complains if necessary.

A company may apply online for the license and pay Taka one lakh for trade license for one year and will have to reapply for its renewal three months ahead of the expiry of the license by paying Taka 10,000 annual fee.

In case of any default, the cabinet secretary said, the government can cancel the license of any ridesharing company and take action as per law of the country.