Ola, Rapido rival Uber launches private car rideshare service in Assam

American ride hailing giant Uber, which competes with Ola and Rapido in the Indian market, has launched a private car rideshare service in Assam, marking a new chapter in India’s evolving taxi and ride-sharing industry. 

The service, called Saarthi, was unveiled at Advantage Assam, the state’s investment summit, where Uber signed a memorandum of understanding with the Assam government to bring private cars onto its platform.

This move follows Assam’s decision in 2023 to allow private cars to serve as taxis, making it one of the first states to introduce such regulations.

Investment and job creation

Uber has pledged to invest Rs 120 crore in Assam over the next three years, aiming to create 20,000 livelihood opportunities during that period. 

According to a company spokesperson, this initiative will include the onboarding of women and army veterans, offering them a flexible way to earn income by providing rides through the Uber app.

The announcement comes at a time when India’s taxi industry is facing driver shortages, and Uber believes private vehicles could help ease the strain.

Focus on safety and inclusivity

In keeping with the company’s safety standards, those joining the platform will undergo background checks. Uber’s technology-driven safeguards, such as a 24x7 Safety Line, phone number anonymization and an in-app emergency button, will be available for both riders and drivers.

In an effort to support women drivers, Uber has introduced a feature similar to Uber Moto Women in Bengaluru, which allows them to decide whether they want to accept all ride requests or only those from female passengers.

How private carpooling works

Under Assam’s revised regulations, private car owners can provide up to four rides within city limits each day and two intercity trips each week. Drivers must have a minimum insurance coverage of Rs 5 lakh.

This approach has attracted attention nationwide, as other states have been more cautious about allowing private vehicles to operate as taxis.

Opposition from taxi and auto-rickshaw unions has previously hampered similar efforts in cities like Bengaluru and Mumbai, but Assam’s decision could encourage other regions to explore the model.

In addition to expanding its pool of four-wheelers, Uber has recently introduced a subscription-based model for auto drivers across India, following in the footsteps of competitors such as Rapido and Namma Yatri. 

"We became the only ride-hailing company to be present across the 7 North-Eastern Indian States in 2022 and have continued to strengthen our footprint, offering safe, reliable, and affordable mobility options," the company said in a statement.