Exclusive: India considers private cars for ridesharing to cut traffic
India's federal think-tank, which is chaired by Prime Minister Narendra Modi, has partnered with companies including ride-sharing firm Uber Technologies [UBER.UL] to assess the economic and environmental impact of using private cars as taxis, a government official involved in the process said.
Increasing the availability of cars that can be used as cabs would be welcome news for Uber and its SoftBank (9984.T) backed local rival Ola, although it could heighten tensions with taxi operators that typically pay higher fees for commercial licences while facing more rigorous vehicle testing.
India's government wants to reduce private car ownership, the official said, adding the three-month study will look at the safety, regulatory, tax and insurance implications.
While the study is in its early days, the broad idea is to set up a clear and reasonable regulatory framework for ride-sharing so it allows companies to operate in India without ambiguity, another source involved in the process said.