App-based cab-hailing services such as Ola and Uber cannot allow private cars for carpooling services in India. They have to acquire a commercial license and only then can a vehicle be put under either uberPool or Ola Share.
However, in developed countries like the US, the UK, Australia and Singapore, Uber and other counterparts do not have to get a commercial license for even normal operations. The Indian Government is now also going to start a study of ride sharing using private cars to decongest the roads.
UberPool and Ola Share are largely used in cities like Delhi-NCR, Mumbai, Bengaluru, Kolkata, Hyderabad and Chennai and often these are the cities that face huge traffic jams. The move is part of the government’s efforts to curb congestion on the roads as well as reducing pollution that has reached dangerous levels in many metros, posing a threat to public health.
“If the Government agrees and lays out some rules for ride-sharing on private cars, Ola and Uber will benefit from it. They will not have to pay the commercial license fee and can regulate the operations themselves,” says PTI.
“It has a range of benefits. It creates economic opportunities for drivers, opens up new mobility options for riders and by allowing existing cars on the road to be used by more people, can be part of the solution to traffic congestion,” an Uber spokesperson said.
The sources said the study will focus on issues like safety of driver and passengers, revenue sharing and levies as using private vehicles for ride-sharing is yet to be formally recognised by Indian laws.
Right now, Ola and Uber are facing a lot of driver partner attrition on their platforms which means that the number of commercial vehicles on the road is dropping, helping the traffic problems. However, even then a lot of drivers have signed up on Ola and Uber that continue to increase the cars on the road.
These companies have been pushing for allowing ride- sharing, a move they feel not only with cut down on the number of vehicles on the streets but also make rides more affordable. Moreover, this will ensure that Ola and Uber are able to regulate the private driver partners more effectively.
Let’s see what decision the Government takes because this move is going to benefit millions of people in large cities in India, and help reduce the pollution and traffic in these places. If India has to become like one of these developed countries, then it needs to define some rules and regulations on such technological advances.