Government reportedly considering using private cars as shared taxi to cut down traffic

The government of India is examining the use of private vehicles as shared taxis in an effort to reduce car ownership and curb the growing traffic in major cities, according to a report in Reuters.  A government official involved in the process told the publication that Niti Aayog, which is chaired by the Prime Minister Narendra Modi, has partnered with ride-sharing firm Uber to assess the economic and environmental impact of using private cars as taxis.

The government wants to reduce private car ownership and the three-month study under the partnership will look after the safety, regulatory, tax and insurance implications of the proposed move. The idea is to set up a clear and reasonable regulatory framework for ridesharing so it allows companies to operate in India without ambiguity.

An Uber spokesperson told Reuters that sharing private vehicles can cut down on congestion and ensure more efficient use of cars. “We are engaging with a range of stakeholders in India about the best way to realize this vision,” he said.

Despite the positives of the proposed idea, the government’s decision is set to attract a lot of opposition from different sides. First, from the existing cab drivers who have given a hefty fee to obtain a commercial driving license. Second, the car makers in India like Tata Motors, Maruti Suzuki, Hyundai Motor, etc. whose car sale ratio will get impacted.