Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023

Government of Delhi announced Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme on November 21, 2023. The scheme has set a timeline for fleet aggregators as well as the delivery service providers to ensure a phased conversion to electric mobility by 2030. With this scheme, Delhi becomes the pioneer in India which has not only aggregator guidelines but has also defined phase-wise electrification targets for the operators.

Eligibility

The guidelines stated in the scheme are for Aggregators, Delivery Service Provider, and E-Commerce Entities with at least 25 motor vehicles (2W, 3W, and 4W, excluding buses).

Key highlights

Following are the key initiatives that are rolled out in this scheme:

  • Bike taxis will be legal in the city, but they must be exclusively electric.
  • The scheme also sets the stage for licensing of aggregators providing passenger transport services and delivery services. All existing or new operators must obtain a license within 90 days of the scheme’s notification or before commencing operations. Licenses will be valid for five years, with annual fees applicable, and zero fees in case of electric vehicles.
  • For fleet aggregators, 100% two-wheelers, 10% of three-wheelers and 5% of four-wheelers in an aggregator’s new fleet (Passenger service) must be EVs within first six months of notification of the scheme. All three-wheelers must be electrified within four years and all four-wheelers within five years (i.e., April 1, 2030).
  • For delivery service providers, 10% two-wheelers and three-wheelers (for transporting goods) and 5% of four-wheelers (for transporting goods) in a new fleet must be EVs within first six months after the notification of the scheme. All two-wheelers and three-wheelers must be electrified within four years and all four-wheelers within five years (i.e., April 1, 2030).

BluSmart has been a successful example of fleet electrification with over 4,000 electric cars running in Delhi-NCR. In 2016, only 0.02% of motor cabs registered were electric whereas in comparison, almost 50% of cabs registered in Delhi were electric in 2022.

Another, success case is of Zypp Electric, a two-wheeler fleet provider that has a completely electric fleet and has tied up with Zomato, Swiggy, Zepto, BlinkIt, BigBasket, Amazon, Flipkart and JioMart to execute sustainable last-mile deliveries in the city with deployment of over 13,000 electric scooters as of April 2023.

Furthermore, there are various new announcements in recent times by the Delhi government, fleet aggregators and delivery providers in achieving electrification targets. Some of them were:

  • In September 2023, Delhi Transport Department invited bids to deploy 3,000 electric scooters to enhance last-mile connectivity to metro stations and bus stands within the Dwarka sub-city.
  • In November 2023, taxi operators like Mega Cabs launched its first entirely electric fleet of 100 cars in Delhi.
  • In January 2023, Ola announced its targets to deploy electric cabs in ride-hailing business with a fleet of 10,000 cars.
  • Similarly, in February 2023, Uber announced its plans to deploy 25,000 EVs over the next three years in India.

The new scheme will be the key driving factor for promoting electrification of vehicles across all the segments ensuring green mobility and lesser air pollution in the city in next few years with such clear and well-defined targets. Delhi government will also be able to monitor the number of EVs licensed by an aggregator which can further help in deciding incentive structure that can be provided for fleet electrification. This scheme will encourage other states as well to introduce similar targets to ensure successful transition to electric mobility.