
Share services were introduced to reduce traffic congestion and offer comfortable and affordable commute.
The scheme, which is aimed at regulating app-based taxi aggregators such as Ola and Uber, is being analysed and is said to be in the final stages before it will be implemented, said a source in the AAP government.
"The scheme, which is a regulatory framework for cab services in the city, will ban shared cab rides," said the source.
The cab aggregators operate with contract carriage permits that allow point-to-point transportation with no stopovers between the origin and final destination of a ride. In contrast to this, the stage carriage permit, given for public service buses, allows picking up and dropping passengers at different stops on a given route.
"The Motor Vehicles Act, 1988, has no provision to allow shared rides by cabs operating under contract carriage permits. Such rides cannot be allowed unless there is a suitable amendment to the Act," added the source.
The cab aggregators had introduced share services - Uber Pool and Ola Share - to reduce traffic congestion and offer comfortable and affordable commute.