Cab Driver Onboarding in India — Uber, Ola, InDrive, BluSmart Documents and Permits

The Indian cab driver regulatory stack has four pillars. Pillar one, the driver's licence — an LMV-TR (Transport) commercial driving licence issued by the state RTO. Pillar two, the vehicle — yellow plate PSV registration with commercial road tax and commercial insurance. Pillar three, the permit — either an All India Tourist Permit (AITP) or a state contract carriage permit, chosen based on the intended operating area. Pillar four, the platform — Uber, Ola, InDrive, BluSmart onboarding with document verification, police verification, vehicle photos and training modules.

All four pillars must be satisfied before the first trip. Driving a cab with a private DL, a white-plate car, or without a valid permit is a compoundable offence under Section 193 of the MV Act (unauthorised passenger transport), attracting fines of Rs 10000 to Rs 25000 and vehicle seizure on repeat offence.

Under Section 3 and Section 6 of the Motor Vehicles Act 1988, driving a vehicle that carries passengers for hire requires a transport driving licence. For a cab driver, this is LMV-TR — an LMV licence with a Transport endorsement. It is not a separate licence; it is an upgrade of the existing non-transport LMV DL.

Eligibility under Section 7 of the MV Act. You must be at least 20 years old, hold a valid non-transport LMV driving licence for a minimum of one year, have cleared the 8th standard minimum school education (this threshold was relaxed in 2018 via the MV Amendment Bill but some states still enforce it), and pass a medical fitness certificate from a registered medical practitioner in Form 1A.

The application process. Apply online through Sarathi Parivahan in your state — select 'Services on DL' then 'Addition of Class of Vehicle (Transport)' or similar wording. Upload your existing DL, Aadhaar, Form 1A medical, address proof and a 200 KB photograph. Pay the fee (Rs 500 for adding a class under Rule 81 CMVR 1989, plus state charges). Book a slot at the RTO for the transport-endorsement driving test.

The test itself. The transport test at the RTO is the same practical driving test as the private LMV test (figure-8 reverse, parallel park, uphill start) but conducted in a dedicated commercial-test slot and scored more strictly. Some RTOs additionally quiz you on road-signs, passenger-safety rules and commercial traffic regulations. A pass gives you the Transport endorsement on your smart-card DL, typically reissued with 'TR' or 'Transport' stamped on it.

Section 2(35) of the MV Act defines a Public Service Vehicle as any motor vehicle used for carriage of passengers for hire or reward, including a cab or taxi. Section 66 requires every PSV to hold a permit, and the vehicle must be registered with a yellow number-plate (black letters on yellow background) under Rule 54 of the CMVR 1989.

If you already own a white-plate private car and intend to convert it to a cab. The process is called 'change of use' on VAHAN portal. Steps — apply for change of use on VAHAN, pay commercial road tax differential (commercial tax is typically 50-150 percent higher than private tax depending on the state), switch insurance to a commercial motor policy (25-40 percent higher premium), get a fresh fitness certificate from the RTO inspector (first fitness for a new car converted is quick; subsequent fitness every 2 years after the first 15 years of age), and surrender your white plate in exchange for a yellow one.

Road tax re-computation on conversion can be surprising. In Karnataka, a private Maruti Dzire with Rs 84000 private road tax paid at first registration in 2022 can attract a further Rs 60000-80000 when converted to commercial use in 2026 — because the commercial tax slab is higher and partly recomputed on the vehicle's current depreciated value. Check your specific state's rate before converting; the VAHAN portal's fee calculator on the 'Change of Use' flow shows the exact amount.

Fitness certificate for a new PSV. A private car up to 15 years of age gets a fitness certificate easily at the RTO — 30-minute inspection by the motor vehicle inspector checking brakes, tyres, lights, seatbelts, fire extinguisher, first-aid kit and odometer. PSVs must pass this every 2 years regardless of age (unlike private cars which need fitness only after 15 years), and the inspector is stricter on passenger-safety items.

Section 66 of the MV Act requires every PSV to hold a permit, and there are several permit types relevant to cab drivers. The two most common are Contract Carriage Permit (state-limited) and All India Tourist Permit (AITP) (inter-state).

Contract Carriage Permit. Issued by the State Transport Authority of the state where the vehicle is registered. Allows the PSV to operate within the issuing state and for point-to-point hire under a contract with the passenger. Cheaper (typically Rs 1000-5000 per year) and faster to obtain (2-4 weeks). This is the right permit for a driver who will operate primarily within one city or one state — which describes most Uber and Ola drivers in Bengaluru, Mumbai, Delhi etc.

All India Tourist Permit (AITP). Issued under the All India Tourist Vehicle Rules 2021 by the home-state STA but valid across all Indian states without inter-state counter-signature. Required for inter-city and inter-state tourist use — for example, a Delhi-registered cab that frequently runs Delhi-Jaipur or Delhi-Agra trips. Higher cost (Rs 10000-25000 per year or a 5-year one-time fee between Rs 25000 and Rs 50000 depending on state), stricter vehicle condition requirements (age cap of typically 10 years for AITP), and the vehicle must comply with AITP livery rules (yellow plate with specific lettering).

Common mistake. Many new Uber and Ola drivers get an AITP thinking 'bigger is better'. It is not. If you operate only in-city, a Contract Carriage Permit is cheaper, faster, and fully sufficient. Apply for AITP only if you plan outstation trips regularly — some premium category drivers on Uber Intercity, Ola Outstation or BluSmart Outstation genuinely need it.

Beyond the LMV-TR licence, every cab driver must carry a Public Service Vehicle Badge — a physical badge (a small plastic card or metal token) issued by the state RTO under Rule 9 of the CMVR 1989 after police verification of the driver's character and criminal record. This is the document that traffic police and platform audits check most often.

Application. Apply at the RTO by submitting a PSV Badge application form (state-specific, usually Form LT or Form 28 depending on state), along with photocopies of the LMV-TR driving licence, Aadhaar, recent passport photographs and a fee of Rs 500-1000. The RTO forwards the application to the local police station for character verification.

Police verification. The police station assigned by Aadhaar address will call you for an in-person visit, check identity documents, take fingerprints at larger stations, and verify that there are no pending criminal cases, especially those involving moral turpitude, assault, dowry offences or serious road accidents. Typical turnaround is 1-3 weeks; some urban police stations are as quick as 7 days.

Once cleared, the RTO issues the PSV badge — a small plastic card with driver name, photo, badge number and validity. Validity is typically 3 years, renewable with a fresh police verification. Some states now issue a digital PSV badge visible on the mParivahan app; the physical badge is still required in the car for spot checks.

Carry the PSV badge in the car, along with the LMV-TR DL and the PSV permit. Traffic police and RTO flying squads spot-check these three documents as the minimum proof of authorised commercial operation.

A private motor insurance policy issued on a white-plate car does not cover commercial passenger-carrying use. Under the standard IRDAI wording, driving for hire or reward voids the policy from the moment the first paid passenger boards. If an accident occurs during such a trip, the insurer repudiates the claim and the liability falls on the driver personally.

Commercial motor insurance is mandatory for PSVs. The structure is similar to private (Third Party mandatory under the MV Act, Own Damage plus Third Party as Comprehensive), but premiums are 25-40 percent higher to reflect the higher passenger-exposure risk. Additionally, Third Party liability limits are structurally higher for PSVs — typically Rs 15 Lakh per passenger plus unlimited injury liability for third parties, versus the Rs 15 Lakh statutory minimum for private.

Passenger Personal Accident cover. Aggregator Guidelines 2020 require every aggregator platform to provide a minimum passenger insurance cover on every trip, typically Rs 5 Lakh for accidental death and Rs 2 Lakh for injury, regardless of fault. This is on top of the driver's commercial insurance policy, and is arranged by the platform (Uber, Ola, BluSmart etc).

Driver Personal Accident cover. Under IRDAI's 2019 circular, PA cover of Rs 15 Lakh is mandatory for every PSV. Platform-provided driver accident insurance typically sits on top of this — Rs 5-10 Lakh additional cover for on-trip injury or death. Verify the platform's specific PA cover at onboarding; it varies significantly across Uber, Ola, InDrive and BluSmart.

Uber India. Download the Uber Partner app (now called Uber Driver), complete account creation with your mobile number. Upload driver documents — LMV-TR DL front and back, PSV badge front and back, Aadhaar front and back, PAN, bank account cancelled cheque. Upload vehicle documents — RC, fitness certificate, commercial insurance, PUC, permit. Book a vehicle inspection slot at a Uber Greenlight Hub; the hub verifies documents, inspects the car physically, and takes photos for the rider app. Complete a 2-hour online training module covering app usage, safety protocols, Uber Code of Conduct and dispute resolution. Activation is typically 3-7 days post inspection.

Ola. Similar document stack uploaded on the Ola Partner app. Ola offers a strong 'vehicle attachment' model where drivers without their own vehicle can drive an Ola Fleet or attached-owner vehicle. In-person verification is done at Ola hubs, which are typically smaller than Uber Greenlight Hubs and more numerous. Ola training is shorter (about 1 hour) and focuses on Ola-specific app features.

InDrive. Simpler onboarding reflecting InDrive's lower-friction approach. Upload core documents (LMV-TR DL, RC, insurance, permit, PSV badge) on the InDrive Driver app, complete a brief video verification, and go live. InDrive has no dedicated hubs in most Indian cities; document verification is entirely remote. Typical onboarding 1-3 days. No training module required, though InDrive does publish a short code-of-conduct video.

BluSmart. EV-only platform with stricter onboarding because it operates a closed fleet model — drivers do not bring their own vehicles; they drive BluSmart-owned EVs from the depot. Onboarding is done in-person at a BluSmart depot in Delhi NCR, Bengaluru or Mumbai. Required — LMV-TR DL, Aadhaar, PAN, bank account, police verification clearance (BluSmart insists on an original PSV badge equivalent clearance). Training includes EV-specific handling, chargespot operation at depots, and rider-code-of-conduct. Pay model is a fixed salary plus incentives rather than per-trip commission.

Rapido Auto and Rapido Cab. Similar to Uber and Ola in structure but historically more permissive on document strictness in smaller cities. Post-2020 Aggregator Guidelines have tightened Rapido's onboarding and it now mirrors Uber on document uploads, though physical inspection requirements vary by city.

The Motor Vehicle Aggregator Guidelines 2020 issued by the Ministry of Road Transport and Highways under Section 93 of the MV Act 1988 set the statutory framework for Uber, Ola, InDrive, BluSmart, Rapido and other aggregators operating in India. Every aggregator must be licensed by the state on which it operates and renew its licence every five years.

Driver-side protections in the Guidelines. First, a commission cap — aggregators cannot take more than 20 percent of the fare charged to the passenger as their commission. Older Uber and Ola contracts had commissions as high as 25-30 percent; these are now capped. Second, a passenger insurance floor — minimum Rs 5 Lakh accidental death and Rs 2 Lakh injury cover per trip. Third, a driver appeal process — drivers de-activated from the platform must have access to a written notice of cause and a 15-day appeal window before permanent removal. Fourth, a fatigue limit — drivers cannot be logged in and active on trips for more than 12 hours at a stretch without a 10-hour rest period.

Fare regulation. State governments can set floor and ceiling fares under the Guidelines. In Delhi, Karnataka and Maharashtra, surge pricing is capped at 1.5x the base fare; in Tamil Nadu at 1.3x. Actual enforcement varies but the statutory cap is enforceable.

Grievance. Every aggregator must operate a 24x7 grievance helpline and resolve driver complaints within 7 days per the Guidelines. Document any platform dispute with dates, trip IDs and written communication — the Guidelines give a legal footing for driver grievances that did not exist before 2020.

For the broader angle on vehicle records and how your PSV-converted car shows up in national databases, see our complete VAHAN portal guide — it covers how commercial vehicles appear differently from private ones in the VAHAN system.

Income varies enormously by city, platform, hours worked and vehicle category. The numbers below are based on 2026 driver reports from Bengaluru, Mumbai and Delhi; your city may vary.

Incentives still drive the platform economics in India. Weekly completion bonuses (complete X trips to earn Rs Y bonus), peak-hour multipliers, and referral bonuses for onboarding new drivers together add 15-30 percent to base earnings for disciplined drivers. The first 6-8 weeks on any platform typically have the highest incentives — treat it as the honeymoon period.

Important tax and GST point. Cab driver income is taxable as business income under Section 28 of the Income Tax Act. Drivers earning above Rs 2.5 Lakh per year (basic exemption) must file ITR-3 or ITR-4. GST registration is required when annual turnover crosses Rs 20 Lakh (Rs 10 Lakh in special-category states), or earlier if driving under an aggregator on whose platform reverse-charge GST applies. Consult a qualified CA on GST registration timing before crossing the threshold.

For a broader comparison of taxi driver maintenance routines and cost discipline, see our guide on Ola and Uber driver car maintenance in India.

Every platform maintains a driver-rating system. Uber and Ola use a 5-star system averaged over the last 500 trips. A rating below 4.6 typically triggers a warning; below 4.3 can lead to suspension or deactivation. InDrive uses a similar rating but weights it differently; BluSmart internal evaluation uses on-time, trip quality and rider-feedback scores.

What pulls a rating down. Poor vehicle cleanliness, rash driving, arguing with passengers, wrong routes that inflate fare, declining rides frequently after accepting them, not following the in-app navigation, smoking inside the car, and demanding cash when the trip is paid via the app. Simple physical hygiene of the car (weekly interior vacuum, daily exterior wash), civil conversation and following the in-app route keep ratings above 4.8 for most drivers.

Code of conduct breaches that trigger instant deactivation. Assault or harassment of a passenger, deliberate fare manipulation, driving under influence, accepting trips while the LMV-TR DL, permit or insurance is expired, and repeat no-shows without cancellation. Platforms have zero tolerance for safety-critical breaches; the Aggregator Guidelines 2020 require them to permanently deactivate on verified cases of assault or harassment.

Appeal process. If deactivated, the Aggregator Guidelines require a written cause notice and a 15-day appeal window. Appeals are submitted via the platform app or email to the platform grievance officer. Outcomes are published within 30 days per the guideline.

Most new Uber and Ola drivers in 2026 do not buy a car upfront. Three capital structures are common in India.

Rent from a fleet operator. Everest Fleet, Karma Vehicles, Lithium Urban, Ola Fleet and similar operators rent out ready-to-drive PSV-registered cabs at Rs 700-1200 per day for a standard sedan, including insurance, maintenance and road tax. Fuel is on driver. This is the lowest-capital way to start — no upfront investment, no permit hassle, no commercial insurance sourcing. Downside is that the rental eats into daily take-home and there is no asset built over time.

Attach to an owner. Drive a PSV car owned by a third-party individual who holds the permit and insurance but does not want to drive themselves. The attached-owner model typically pays the driver a fixed salary (Rs 18000-28000 per month in metros) plus a share of trip earnings above a target. Low capital for the driver, predictable income, but permanently attached to one owner's vehicle and one owner's whims.

Own the vehicle. Buy a PSV-ready car (common choices — Maruti Dzire Tour S, Honda Amaze, Hyundai Aura, Toyota Etios Liva, Tata Tigor) for Rs 7-10 Lakh on-road, convert to commercial use (yellow plate, commercial tax, commercial insurance), obtain permit and fitness. Capital outlay Rs 3-5 Lakh as down payment on a commercial vehicle loan, EMI Rs 14000-20000 per month over 4-5 years. Gross monthly earnings of Rs 70000-90000 less Rs 20000 fuel, Rs 15000 EMI, Rs 3500 commercial insurance, Rs 2000 maintenance = net Rs 29500-49500 per month. Builds an owned asset over 4-5 years.

Which to choose. Start on the rental or attached-owner model for 3-6 months. This lets you validate that you enjoy the work, learn the platform, understand peak hours and routes in your city, and build a credit history on the platform's weekly payouts. If the numbers work, move to ownership in month 7-9 with a targeted down payment you have saved from the rental phase earnings.