No official notice to halt car-pooling in Karnataka: Ola, Uber sources

Industry analysts said that there is no clarity on issues such as car-pooling from the central government to determine what is legal and what is not. “If you look at carpooling, all of us have been to railway stations and religious places and shared taxis are a norm there. There are even shared taxis for employees to reach offices. So, the concept is not illegal,” said Madhur Singhal, managing director at management consulting firm Praxis Global Alliance. He was of the view that such issues are prone to get “exploited” as they have not been explicitly explained by the government, especially in the context of Ola and Uber.

“Given that the stakeholders themselves are not that enthusiastic about car-pooling, the subject is easily open to exploitation,” said Singhal of Praxis. In certain states and cities in the country, the influence of local taxi and three-wheeler associations combined with the no resentment from the drivers for the elimination of the carpooling service creates a “fertile ground for a local authority to issue a diktat to stop such a service,” said Singhal.

Featured Leader: Madhur Singhal

This article was originally published on Business Standard. Read more.

Are you looking to grow faster than the competition? Write to us below.