Uber now lets private car owners offer ride-sharing in Assam
What's the story
American ride-hailing giant Uber has launched a new service in India, enabling private car owners to offer rides through its platform. The initiative is being rolled out in Assam at the moment, marking a major shift in the company's operational strategy. The move comes as part of Uber's larger push to add white number plate four-wheelers as taxis across several Indian states.
Strategic launch
Assam's unique position in Uber's strategy
Notably, the launch of this service in Assam is particularly noteworthy as the state has been open to private cars plying as taxis. In 2023, Assam revised its motor vehicle rules to allow such operations within certain limits. This flexibility in regulations has made the state a potential model for other regions contemplating similar changes.
Industry impact
Addressing driver shortage
The launch of Uber's service comes at a time when India's online taxi industry is struggling with a driver shortage. Permitting private vehicles could go a long way in addressing this problem. However, most state governments have been reluctant to allow private vehicles due to opposition from unions, accoridng to The Economic Times.
Market novelty
Uber's service: A 1st for India
The new service from Uber is exclusive to the Indian market. It would provide an income source to people of different demographic groups using their own vehicles, without having to identify as professional taxi drivers. An Uber spokesperson confirmed the development to ET, highlighting its potential impact on the ride-hailing landscape in India.
Expansion hurdles
Challenges in expanding Uber's service
Despite the initial success in Assam, industry executives have raised concerns about replicating this model in other Indian states. They cited strong opposition from taxi and auto rickshaw unions as potential roadblocks. Past attempts to operate private cars as taxis through carpooling platforms have been met with protests in major cities like Bengaluru and Mumbai, further complicating expansion efforts.
Regulatory details
Assam's rules for private car taxis
Currently, most Indian states only allow commercially registered four-wheelers with yellow number plates to ply as taxis. These vehicles pay higher taxes and registration fees, which raises the initial investment for drivers. However, Assam's revised rules allow private cars to provide a maximum of four intracity rides a day and two intercity trips a week. The rules also mandate ride-sharers to have insurance of at least ₹5 lakh.