Carpooling in India: Why the Government Is Now Embracing Ride-Sharing

India’s rising urban population has led to worsening traffic congestion and pollution issues, now at the forefront of national concern. In response, both state and central governments have begun officially supporting carpooling in India as a smart, scalable commuting solution.

The Economic Survey 2024–25 estimates that widespread carpooling could eliminate 780,000 daily trips and save 380 million litres of fuel annually. With transport contributing around 14% of India’s direct emissions, reducing car usage is essential for meeting climate goals.

Indian cities like Kolkata, Bengaluru, and Pune consistently rank among the world’s most congested. In Kolkata, a mere 10-km commute takes over 34 minutes, underscoring the need for change.

Carpooling helps ease traffic, lower fuel costs, and cut emissions—all while making better use of the cars already on the road. As over 31% of Indians live in cities, the shift to shared mobility isn't just helpful—it’s urgent.

Why the Shift Toward Carpooling in India?

1. Traffic Congestion

India's cities are buckling under the pressure of exploding vehicle numbers, with infrastructure unable to keep up. In places like Bengaluru, Pune, and Kolkata, daily commutes can stretch painfully long. Official studies have shown that most private cars carry fewer than two passengers, despite having five seats. Carpooling provides an immediate remedy by increasing vehicle occupancy and reducing the number of cars on the road.

2. Pollution and Climate

Reducing car numbers directly cuts emissions. Policymakers cite carpooling’s fuel savings as a co-benefit. As one analysis notes, sharing rides can significantly cut pollutants and greenhouse gases. Lower fuel use also eases India’s oil import bill.

3. Infrastructure Constraints

Urban infrastructure is struggling to keep pace with the rapid growth in population and vehicles. Roads and public transport systems simply can't scale quickly enough to meet rising demand. Carpooling, by optimizing existing private vehicles, offers an efficient solution without additional physical infrastructure.

4. Gaps in Public Transit

Many urban professionals report that public transport is unreliable or overcrowded. In cities like Pune, buses are often reduced, and commuters struggle with punctuality. Carpooling fills this gap, offering a more predictable and comfortable alternative.

Central Government Initiatives

Aggregator Guidelines

The Centre’s Motor Vehicle Aggregator Guidelines (2020) formally recognized carpooling. The 2024 draft regulations further distinguish carpooling from commercial taxi services, allowing private drivers to register as "driver-users" without needing commercial licenses. This reflects the non-commercial, cost-sharing nature of pooling.

Sustainability Policies

Carpooling is listed among 75 recommended actions under the LiFE initiative, emphasizing its role in cutting emissions, saving fuel, and promoting sustainable urban living.

Safety and Regulation

National norms now require insurance for all pooled passengers (minimum ₹5 lakh per person), and strict identity verification for drivers and riders. These measures increase safety and accountability in app-based ride-sharing.

State-Level Progress

Maharashtra

In April 2025, Maharashtra became the first Indian state to officially legalise app-based private carpooling. Apps like POOLit can now operate legally if registered with the state and compliant with safety protocols. Drivers can offer a maximum of 14 pooled trips weekly, and women can opt for female-only rides.

Karnataka

Karnataka's government, particularly in Bengaluru, clarified that carpooling is not banned, so long as it is cost-sharing and not for profit. The transport department is working on formal guidelines, and state police have actively promoted carpooling to reduce congestion on major corridors.

Telangana (Hyderabad)

In a recent move, Chief Minister A. Revanth Reddy proposed promoting carpooling in Hyderabad’s IT corridor to ease traffic congestion. The response has been overwhelmingly positive, with many commuters beginning to share rides through apps and informal networks. This public enthusiasm highlights a shift in urban commuter behaviour and signals government's willingness to support grassroots mobility solutions.

Delhi

The Delhi government is taking an institutional approach to ease congestion. The Directorate of Education has directed all government and private schools to work closely with local police to manage illegal parking and reduce honking near school zones. This strategy, although not exclusively about carpooling, aligns with broader traffic management goals and opens doors to future shared mobility efforts around schools.

What This Means for Urban Commuters

Lower Costs

Carpooling dramatically reduces daily commuting expenses by splitting fuel, tolls, and parking fees. Office-goers report saving up to 30% on their travel costs.

Time Savings

Reducing the number of cars leads to quicker commutes. Carpooling also benefits from access to High-Occupancy Vehicle (HOV) lanes, where available, allowing shared rides to move more efficiently through traffic.

Environmental Impact

Every pooled ride significantly lowers per-person emissions, making a meaningful contribution to cleaner air. By reducing the number of individual vehicles on the road, carpooling supports city efforts to meet air quality standards and advance climate goals.

Safety and Trust

With mandatory ID verification, trip logging, and insurance, riders can trust that their carpool trips are secure and legally protected.

Government Support

With the government stepping in, carpooling has gained formal recognition at both the national and state levels. This support is helping create a trusted ecosystem for daily commuters and mobility platforms

Carpooling in India: The Government-Backed Mobility Solution

Carpooling in India has officially moved from the margins to the mainstream, with strong endorsements from both state and national governments. With strong endorsements from both state and national governments, ride-sharing is now recognised as a legitimate, sustainable solution to urban congestion and climate concerns. What was once an informal workaround is now a regulated, insured, and safe mode of daily travel, especially for professionals navigating India’s busiest cities.

Leading this shift is POOLit, a platform built to align with this new vision of commuting. By offering a verified, insured, and easy-to-use carpooling experience, POOLit empowers users to share rides with confidence, saving time, money, and the environment. As infrastructure strains and fuel costs rise, POOLit provides a real, scalable alternative to the solo drive.

More than just a mobility app, POOLit is proud to be part of this transformation—connecting professionals across cities, reducing carbon footprints, and making everyday commutes more affordable and responsible. For working professionals across India, the message is clear:

"Carpooling with POOLit isn’t just a good choice-it’s the right one".

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