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If Delhi has the worst air quality, why are paid carpool rides under the danger of getting banned?

Sep 28, 2018, 17:38 IST

  • Paid carpooling and ridesharing may be banned in Delhi by the committee in charge of reviewing the regulations of app-based cab operators.
  • Under the City Taxi Scheme 2017, permits only allow cab operators to pick up passengers from point A to point B, without any intermediary stops.
  • Considering Delhi’s parking, congestion and air quality problems, the fall out of such a ruling remains uncertain.
The five-member committee currently reviewing the regulation of app-based cab operators like Uber and Ola in New Delhi is unlikely to rule in favour of paid carpools. With the national capital’s traffic congestion problems and air quality issues, the consequences of this move may have ample environmental fallouts.
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Under the City Taxi Scheme 2017, cabs are only allowed to pick up and drop passengers from one point to the next. Currently legal provisions only allow buses to pick up other passengers along the route and make multiple stops.

After effects

Customers are going bear the ultimate brunt if the verdict rules in favour of banning of ride-sharing. Even if individuals choose to pay more and opt for solo rides, the increased congestion on the road with more people using individual cars, will add to the time opportunity cost.

The increasing number of cars on the road could also spell worsening air quality in New Delhi. According to the World Health Organisation (WHO), Delhi has 292 micrograms per cubic meter of PM10 particles. That’s double the amount in Dakar, the second city on the list.

The effect on the companies themselves is a different story. Recent reports indicate that while the absolute number of rides have been increasing, the companies are now growing at a slower rate. Experts believe that one of the reasons is the focus on ride-sharing. The ban could either be good for the companies if customers shift to solo rides. Or, bad if customers choose to shift to public transport altogether or find other alternative means of transportation.
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Other issues on the table

In reviewing the regulations for cabs in the Indian national capital, the committee is also discussing the issue of green fuels and permits. Possible outcomes include enforcing that cabs only use fuels like CNG or LPG and providing proof of parking before applying for a permit.

The biggest development to come is probably the tracking of cabs. Currently, cabs in the city aren’t monitored as they pick up and drop passengers. But the committee is considering adding GPS monitoring to the roster, not only for cabs in Delhi but for cabs that are registered in other states while operating within the city.

For actual customers, the issues of greater relevance are the ‘panic’ button that will soon become a mandatory feature in cabs and putting a cap on the maximum fare that companies can charge from customers.

If the scheme also goes through with its plan of limiting the number of cabs that can be put on call by a cab operator, the demand-supply disparity might even increase the overall prices in the market.

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The committee, that includes the transport minister Kailash Gahlot and Satyender Jain, a minister at the Public Works Department, is currently reviewing the City Taxi Scheme 2017, Licensing and Regulation of App-based Cab Aggregator Rules 2017 and app-based premium bus services.

Sources have told Times of India that this the committee is unlikely to rule in the favour of companies being allowed to operate ride-sharing in Delhi. They were originally supposed to come to a decision on Monday, but that has now be deferred to a date that is yet to be decided.
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