Abstract: A method and a system for allocating co-passengers in a ride-sharing system are provided. A booking request including source and destination locations of a passenger is received for a share-ride. Based on the booking request, a route including pick-up and drop-off locations from a set of routes is selected. A time duration is determined for the passenger to reach the pick-up location from the source location. Further, a time duration is determined for each vehicle of a set of vehicles to reach the pick-up location from their respective current locations. Based on the time durations, a vehicle from the set of vehicles is allocated to the passenger for the share-ride.