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Published 17:39 IST, September 16th 2019

Govt brings strict rules for private carpooling, makes KYC mandatory

The Government has asked the Transport Ministry to work on guidelines to develop a model for private carpooling to provide an economically viable solution

Reported by: Ankita Chakraborty
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The Government, in order to prevent private carpooling to turn commercial, has asked the Transport Ministry to work on the guidelines to keep private carpooling in check. One of the most important points of the given guidelines is its 'no profit no loss' activity. The Transport Ministry has prepared guidelines which mandate know your customer (KYC) for the users. This along with the number of rides taken per day will be noted to ensure that private carpooling does not turn into a commercial activity.

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On private carpooling 

People allowing carpooling will have to ensure that the business model is drafted in such a manner that only the cost of the ride gets split amongst the vehicle owners and the passengers. The Government wants the operators to split the cost, working on a 'no profit, no loss' model rather than turning it into a commercial business. The process of private carpooling will happen through a mobile-based application only. The mobile applications will have to push out a KYC enabled-system for the verification of the vehicle owner and the rider.

Another key factor of the policy is the fact that this will enable the State Government to earn revenue through ride-sharing facilities. So far, the Government has not been receiving any monetary benefits. However, in future, remuneration will be essential for the efficient functioning of the system. 

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Ride-sharing benefits

Adapting to the system of carpooling can turn out to be extremely beneficial in many ways. This would reduce traffic congestion, emissions from the automobiles along with reduced traffic on the roads as a consequence of ride-sharing. This will provide to be a comfortable travel option at viable economic rates, furthermore reducing congestion in public transports as well. With an increase in the population every single day, the number of cars on the road along with travel time and pollution has also increased. The private carpooling can be a viable option to meet the need of the day to tackle the issues in hand. 

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Updated 19:35 IST, September 16th 2019

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