Uber, the US-based ride-hailing giant, has launched a new ride-sharing service in India, starting with Assam. This initiative will allow private car owners to operate as ride-share drivers using the Uber app. The move aligns with Uber’s global practice in countries like the US, UK, and Australia, where private vehicle owners can register as taxi operators.
The rollout in Assam will initially involve women and army veterans as drivers, serving as a pilot project for Uber to explore private car-based ride-sharing across India. The company aims to use this implementation as a case study to persuade other states to adopt similar policies.
The Indian government has issued guidelines permitting states to allow private cars for cab aggregation. However, most states have yet to incorporate these provisions into their motor vehicle rules. Assam, which implemented these rules in 2023, became the first state to facilitate private car-based ride-sharing under specific conditions.
Industry insiders note that India's online taxi industry is facing a supply shortage of drivers. Enabling private vehicles to operate as taxis could significantly boost availability. However, strong opposition from taxi and auto-rickshaw unions has prevented this model’s widespread adoption.
An Uber representative confirmed that Assam's move could serve as a benchmark for other states. If successful, the model could be expanded nationwide, allowing more individuals to earn income using their private vehicles rather than investing in commercially registered taxis.
Despite the advantages, experts point out that implementing similar services in other states will be challenging due to opposition from taxi unions. Cities like Mumbai and Bengaluru have witnessed protests against carpooling platforms attempting to introduce private vehicles into the ride-hailing sector.
A Bengaluru-based executive from the ride-hailing industry stated that regulatory concerns and lobbying efforts by taxi operators often hinder the acceptance of private car ride-sharing. The industry will need strong advocacy to convince state governments to embrace this model.
Under existing regulations, most states only allow commercially registered vehicles—those with yellow number plates—to operate as taxis. These commercial vehicles are subject to higher registration fees and taxes, increasing operational costs for drivers. While this generates greater tax revenue for states, it also restricts the availability of taxis.
The Ministry of Road Transport and Highways issued guidelines in 2020 permitting aggregators to use non-commercial vehicles for ride-sharing. The move aimed to reduce traffic congestion and curb automobile pollution. However, individual state governments retain the authority to ban or regulate private car ride-sharing.
Assam’s 2023 Motor Vehicle Aggregator Rules allow private cars to operate as taxis, subject to specific limitations:
A maximum of four intra-city rides per day
A limit of two intercity trips per week
Mandatory insurance coverage of at least ₹5 lakh for ride-sharing drivers
An option for women passengers to share rides exclusively with other women
These rules strike a balance between enabling private car-based ride-sharing and addressing safety and operational concerns.
If Uber's Assam pilot program proves successful, it could encourage more states to consider similar models. The initiative presents a solution to the driver shortage and provides an additional income stream for private vehicle owners. However, resistance from existing taxi operators and regulatory hurdles will determine its long-term viability.
For now, Assam remains the only state where Uber's private car ride-sharing model is permitted. The industry will closely watch its progress to assess the feasibility of broader implementation across India.