Uber Lobbying Hard With Govt to Open Ridesharing Using Private Cars; Wants Motor Vehicles Act Amended!
Uber wants a scenario wherein any private car on the road can instantly become an Uber cab, offering carpooling services to anyone with their app. This is called Peer-to-peer or P2P model, which can actually become a game changer for them.
However, the issue is that such instant conversion of a private car into a taxi is now allowed under existing rules. And Uber wants to change that. And fast.
Uber To Govt: Change Motor Vehicles Act, 1988
Uber is right now lobbying hard to convince Govt. to bring in a major amendment to the Motor Vehicles Act, 1988, so that private cars can be instantly converted into a carpooling taxi using Uber’s platform.
In fact, if the rules are changed, then not only Uber, but also Ola can benefit. But whether Ola is part of this lobbying or not, it not yet clear.
Using pollution and congested city traffic as a lobbying card, Uber India Head Amit Jain said, “What we need to do to solve some of the traffic, pollution and congestion issues that are so endemic in Indian cities is how do you get more people less cars and more people in private car ride sharing and reduce the number of cars on the roads..”
This is a fact that in the US, Uber is right now getting a majority of business via P2P model, and want the same to be implemented in India as well. Besides, another fact of the matter is that compared to commercial vehicles, there are more private cars on the roads in India.
And if the Motor Vehicles Act is changed and private cars are allowed to become taxis, then it will also solve a major headache for Uber: Commercial Drivers and their infinite problems.
Is Uber Trying To Find Alternative Of Commercial Drivers
The issue with drivers is that Uber had provided large incentives in the earlier days to encouraging more drivers on their platforms. Now, the incentives have stopped, and drivers are upset and angry. Infact, so much angry that they are soon going to launch their own app to compete against Uber and Ola.
Delhi, Mumbai and Bengaluru, which commands 60% of Uber India’s market share witnessed continued disruption of their services due to drivers’ strikes, something which Uber wants to avoid now.
Under such circumstances, it makes sense for Uber and Ola to by-pass commercial drivers, and use private vehicles for expanding their reach and to increase revenues. After all, Uber and Ola are applications, which can earn money when their platform is being used for a ride.
It doesn’t even matter whether the ride is coming via commercial vehicle or a private vehicle.
Motor Vehicles Act, 1988 is the only great obstacle now, and Uber wants to change the law to fulfil their business objectives.
Will Indian Govt. allow this manipulation? Conversion of private cars into instant cabs is a good signal for commercial vehicle owners? We will update you as we receive more information..