New Delhi, November 12: Starting a rental cab business in India could soon need just five cars instead of fifty. The Ministry of Road Transport and Highways has unveiled a draft Rent-a-Cab Scheme 2026 that would replace the 1989 framework governing the industry for nearly four decades, Mirror Now reported.

Source: Mirror Now

Under the draft, the minimum fleet drops from 50 vehicles to five, with at least two vehicles stationed at each place of operation — a change aimed at letting start-ups and smaller local firms enter the market. News18 Hindi reported the same core proposal from the ministry on Thursday.

Source: News18 Hindi

The draft brings online licensing and time-bound approvals: applications and renewals are to be processed within 60 days, and requests to add or remove operating locations or vehicles would be deemed approved if officials do not respond within 30 days. A flat licensing fee of Rs 25,000 is proposed, regardless of fleet size.

On safety, vehicles must be no older than nine years and carry valid registration, fitness and pollution certificates, comprehensive insurance covering the renter, driver and occupants, no pending traffic fines, and must not appear in the National Crime Records Bureau database of vehicles involved in criminal activity, according to the Mirror Now report.

Self-drive and chauffeur-driven services would sit in the same legal framework for the first time. Drivers must hold valid licences and undergo police verification, with welfare coverage in line with the Code on Social Security, 2020. The draft also requires vehicle location tracking, child restraint systems, first-aid kits, 24-hour customer support, a 24-hour window for website grievances and a seven-day limit for inquiries into driver-related incidents.

The ministry has opened the draft to public and stakeholder feedback, with submissions due by December 5. The proposals remain a draft at this stage and will take final shape only after the consultation.