Private Cars May Enter Ride Sharing Business in India


Indian government to conduct a study on usage of private cars for ride-sharing; implementation could curb traffic congestion in major cities

Private cars might enter the ride-sharing business in India, as government is preparing to conduct a study for that. This study will explore the possibility of usage of private cars in the country for ride-sharing business that is expected to help in curbing the alarmingly rising traffic congestion in major cities. Not only that, it will significantly reduce the pollution level as well.

NITI Aayog is already taking expert views on various aspects of using private cars for ride-sharing. It is exploring the aspects like safety, regulations, tax issues etc. Interestingly, app-based cab service providers like Uber and Ola will be highly benefitted from this system, as currently these operators have to pay a hefty amount for getting commercial licences.

Also read: Uber Flying Taxis to be Launched in Texas and Dubai by 2020

Ride sharing is a widely regarded concept that is being implemented across the world. In countries like Australia and Singapore, private cars are allowed to be used for ride sharing services. But in India, this is not legally recognised yet. This mechanism has several benefits for both the drivers and the passengers as well.

The owner of the cars can earn some extra money with this system, while the passengers don’t need to opt for buying new car for commuting. Fare for the passengers will also come lower with this system implemented. With this, lesser number of cars on roads and that are being used by more people. This means less traffic on roads minimizing the chance of congestion. Lesser the cars, is lesser the emission level.

Also read: 20+ Expected Upcoming Cars at 2018 Auto Expo

Interestingly, India has immense potential for ride sharing business. Currently, ride sharing like UberPool and OlaShare account for nearly half of the total rides taken every day in major cities across the country. However, allowing private cars as taxis could draw flak from the conventional taxi operators, just as Uber and Ola drew protests from the taxi operators when these app-based cab services started here.