India to examine private cars for ridesharing to cut traffic

India is analyzing the use of private cars as shared taxis in an effort to lower automobile ownership and curb growing traffic jam in major cities, sources knowledgeable about matter told Reuters.

The country’s federal think-tank, which is chaired by Prime Minister Narendra Modi, has partnered with firms such as Uber Technologies to examine the economic and environmental effect of using private vehicles as taxis, a government official involved in the procedure said.

Boosting the availability of vehicles that can be used as cabs would be welcome news for Uber and its rival Ola, although it could increase stress with taxi operators that usually pay higher costs for industrial licences while dealing with more extensive vehicle testing.

India’s government wants to decrease private vehicle ownership, the authorities stated, including the three-month study will look at the safety, regulative, tax and insurance implications.

While the study reamins in its early days, the broad concept is to establish a clear and affordable regulatory structure for ride-sharing so it enables companies to run in India without ambiguity, another source involved in the process said.

Although Uber is permitted to use private cars for ride sharing in nations such as Australia and Singapore, their use has found opposition from taxi operators in regions of North America.

An Uber representative said sharing private vehicles can assist cut congestion and ensure more effective use of vehicles.

“We are engaging with a range of stakeholders in India about the best way to understand this vision,” he stated.