Delhi bans bike taxi services offered by Ola, Uber, Rapido: Levies hefty fine on passengers, companies

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The Delhi government has dealt a blow to cab aggregators like Ola, Uber, and Rapido, announcing an immediate ban on bike taxi services. According to a notice released by the Delhi transport department, two-wheelers that bear non-transport (private) registration marks/numbers are being used for passenger transport. The government notice emphasizes that using personal vehicles as commercial taxis is a violation of The Motor Vehicles Act, 1988.

Consequently, the ban will affect not only the cab aggregators but also many customers who rely on two-wheelers through Ola, Uber, and Rapido due to the increasing fares of cabs. Furthermore, numerous people prefer this economical mode of transport since bikes are more manoeuvrable in Delhi’s traffic.

Rules & Regulations set by Delhi Government

The Delhi Transport Department has recently informed several commercial bike taxi services that their drivers are using personal motorcycles.

To this end, the Transport Department has issued a public notice emphasizing the legal implications of such actions. In the event of a first offence, the driver will be subjected to a fine of ₹5,000. In the case of a second offence, the driver may be fined ₹10,000, imprisoned for up to 1 year, and have their license suspended for three months.

On the other hand, app-based startups offering these services – Ola, Rapido and Uber – would also be held accountable and will be subject to a hefty fine of ₹1 lakh. This is a significant penalty and serves as a warning to companies who flout the law.

There have been a few incidences reported in multiple Indian states in the last six months in which these two-wheeler drivers committed crimes with female passengers. As these two-wheeler taxi services lack adequate emergency buttons, they pose a threat to women passengers’ safety. Therefore, the Delhi traffic police department is currently inspecting motorbikes associated with Ola, Uber, and Rapido. If the driver commits the offence again, their driver’s license will be suspended for at least three years.

The Delhi government’s decision came after the Supreme Court prohibited Rapido services in Maharashtra.

As of now, Uber and Ola in Delhi still offer bike cab services. However, this may change as rules are updated and remain in effect until the regulations are amended.

According to the existing regulation, a taxi service must have a driver and at least one passenger. This rule permits four-wheeler cabs, auto-rickshaws, and e-rickshaws, but excludes bikes. Certain rules and obligations govern cab services – the vehicle must have a registration mark; yellow number plates; PSV badge, which is issued after police verification; and drivers must attend behavioural sessions.”

Ola, Uber, and Rapido have yet to comment on this matter. Kailash Gahlot, Delhi’s MLA and Transport Minister, shared on Twitter that the policy for aggregators of two-wheelers, three-wheelers, and four-wheelers is almost finalized and will soon be implemented, enabling them to apply for licenses under the new scheme.

Bike taxi services banned in Delhi: Discourage Individuals

It is worth noting that the notice from the Department of Transport is intended to discourage individuals from using their personal motorcycles to provide transportation services.

The government has issued a notice stating that certain app-based companies are in violation of the Motor Vehicles Act, 1988. It should be noted that these companies are presenting themselves as aggregators and are operating without a valid license, which is in clear contravention of the law.

It is worth noting that amendments were made to the Motor Vehicles Act in 2019, which made it explicitly clear that aggregators cannot operate without a valid license. This was done to ensure that such companies are regulated and held accountable for any violations that may occur.

It is imperative that companies operating in the transportation sector adhere to the rules and regulations laid out in the Motor Vehicles Act. While the ban on bike taxis may inconvenience some customers who rely on these services due to the increasing fares of cabs, it is a necessary step towards ensuring passenger safety and maintaining the integrity of the transport industry.

Two-wheeler Bike Taxi Market in India

Two-wheeler bike taxi services are fast gaining popularity in India. and that’s the reason all the leading app-based cab aggregators like Ola and Uber have jumped into the market to capture a sizeable share.

The two-wheeler bike taxi market reached $50 million in 2021 and is projected to reach $1.45 billion by 2030, clocking 48.5% CAGR. The growth is primarily led by the surging demand in Tier-1 and Tier-2 cities where affordability is still a prime concern for people than ease & comfort. Besides, people find bike taxi services quick and easy to avail for short-distance rides.


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