In a significant move that might affect the ride-sharing and taxi industry, a high-level panel of the central government has recommended that private vehicles be allowed to ply as taxis under ride-sharing aggregators, reports The Economic Times. The move is aimed at reducing the number of vehicles on India’s roads.
Taxi permits may be liberalised so that private cars can easily be converted and used as taxis by service aggregators.The report prepared by the panel
The panel – which included members from various ministries as well as the NITI Aayog – stated that passenger safety would need to be addressed through proper policies and that the lack of services in the market could lead to an oligopoly.
Globally private vehicles are allowed to double-up as taxis through a ride-sharing platform in several countries such as the United States and Singapore.
A NITI Aayog report last year had stated that private vehicles had an average occupancy of 1.15 people, implying that they were occupied for only 28 per cent of the time.
Last July, the Ministry of Road Transport and Highways (MoRTH) opposed the plan to allow private vehicles, claiming that it would be unfair for those with commercial vehicle permits.