IAMAI raises concerns over Delhi’s EV conversion targets and impact on gig workers

IAMAI, the Internet and Mobile Association of India, which is a not-for-profit industry body representing the digital services industry, has expressed concerns about the recently announced Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023. While IAMAI supports the development of the electric vehicle (EV) industry and acknowledges the importance of environmental policies, they believe that the scheme’s aggressive EV conversion timelines could negatively impact the livelihoods of gig workers in Delhi.

Delhi Government Transport Department shared the Draft Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme 2023 in May 2023 for licensing and regulation of aggregators providing passenger transport services and goods delivery services, including last-mile delivery service providers in Delhi. Details below:

Scope – Applicable to aggregators with at least 25 vehicles (2W, 3W, 4W categories). Targets:

– 100% EV adoption in net new onboarded passenger vehicles – 4 years for 3W, 5 years for 4Ws.

– Only e-2W can be onboarded for the bike-taxi fleet from the date of commencement of the scheme.

– 100% EV adoption in net new onboarded delivery vehicles – 4 years for 2W, 3W, 5 years for 4Ws.

– All aggregators (passenger and delivery) shall switch to an all-electric fleet by April 1, 2030. The existing conventional vehicles (Petrol/CNG/Diesel propelled) on-boarded by the Aggregator shall be liable for penalty.

IAMAI argues that the EV conversion targets set by the scheme seem to be based on assumptions of a mature EV ecosystem rather than evidence-based research. The industry body highlighted the lack of charging stations and battery-swapping infrastructure in the capital, making it nearly impossible to achieve the ambitious targets within the proposed timelines.

The organization believes that enforcing aggressive EV transition mandates for aggregators and delivery service providers could disrupt business activities and harm the livelihoods of gig workers. Many gig workers have invested significant capital, often through loans, in internal combustion engine (ICE) vehicles. Additionally, the high costs associated with owning an EV make it financially unviable for most gig workers. IAMAI has raised concerns about the target of 100% electrification of bike taxis from the outset, as it could leave numerous gig workers without work overnight without a moratorium in place.

Regarding consumer grievances, IAMAI recommended adopting a graded approach to address complaints based on urgency and nature. They also request the Delhi government not to impose additional data storage requirements, as comprehensive regulations for data storage and sharing are expected to be addressed by the central government through the Digital Personal Data Protection Bill, 2022. IAMAI further suggests the implementation of an escalation mechanism prior to imposing penalties to ensure fairness and transparency for all stakeholders involved.

IAMAI acknowledges the importance of EV development but urges the Delhi government to consider the current realities of the EV ecosystem and the potential negative consequences on gig workers’ livelihoods before implementing the aggressive EV conversion timelines proposed in the scheme.

Also Read: Delhi EV ecosystem growth, EV sales and Policy impact