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India Loses USD 22 Billion a Year in Peak Traffic Hours in 4 Indian Cities: Uber

According to the BCG survey, up to 89 percent of people plan to buy a new car in the next five years.


Updated:April 18, 2018, 4:12 PM IST
India Loses USD 22 Billion a Year in Peak Traffic Hours in 4 Indian Cities: Uber
Image for representation only. (Photo: Reuters)
The top four Indian cities are today 149 percent more congested than comparable cities in Asia and the country is losing over $22 billion a year in peak traffic hours compared to travel time during non-peak hours in those cities, an Uber-commissioned study revealed on Wednesday. On average, commuters in Delhi, Mumbai, Bengaluru and Mumbai are taking 1.5 times longer to travel a given distance and ridesharing or shared mobility is the only solution to get rid of the traffic menace, said the study titled "Unlocking Cities: The impact of ridesharing across India" by the Boston Consulting Group (BCG).

"Through this study, we are hoping to draw the attention of administrators and urban planners on how shared cars and mobility can be part of the solution vs individual car ownership," Amit Jain, President, Uber India and South Asia, told reporters here.

According to the BCG survey, up to 89 percent of people plan to buy a new car in the next five years. However, over 79 percent would refrain from buying a car if ridesharing matches car ownership for affordability and convenience, it added.

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The study was launched in the presence of Uber's Global COO Barney Harford, Suresh Subudhi, Partner, BCG and Ann Lavin, Senior Director, Public Policy and Government Relations, Uber APAC. "If car ownership trends continue, Indian cities risk coming to a complete standstill in only a few years," said Harford. "Ridesharing can be part of the solution to traffic congestion because it uses technology to get more people into fewer cars. We can unlock our cities and their full potential, but we have to do it together," he added.

In these circumstances, ridesharing would reduce private cars by 33-68 percent. By reducing private cars, increasing vehicle utilisation, improving public transport adoption, and optimising infrastructure planning, ridesharing could reduce congestion by 17-31 percent, the findings showed.

"In the coming months, we will introduce several India-first innovations that will help bring the benefits of ridesharing to many more Indians and enable us to work with the government towards a common goal: reduce private car ownership and expand access to public transit systems," Jain noted. Overall, travel by public transport accounts for 19 percent and 54 percent of kms travelled in Delhi and Mumbai, respectively.

On average, 25 percent of the private car owners surveyed in Delhi and Mumbai expressed a keen interest in becoming rideshare drivers.

"On-demand ride-sharing is a practical way to reduce the number of private vehicles on the road and reduce congestion. It is important to encourage this proactively," said Suresh Subudhi, Global Sector Head -- Infrastructure and Transport, BCG.

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| Edited by: Sarthak Dogra
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