Bike Taxis Face the Ire of State Governments Recent bans on bike taxi operators Ola, Uber and Rapido by Delhi and Maharashtra governments appear to have resulted primarily due to concerns around passengers' safety in the absence of any legal provisions to allow bike taxis to ferry passengers

By Soumya Duggal

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

freepik

With the Delhi government recently banning ride-hailing platforms such as Ola, Uber and Rapido from running their bike taxis, the issue of the operators of such services violating motor vehicle rules has once again come to the fore.

According to the Delhi Transport Department, companies using private two-wheelers to carry passengers on hire without a proper commercial licence are violating the Motor Vehicles Act, 1988, and could consequently be fined up to INR 1 lakh.

Similar Bans in the Past

Earlier this month, the Supreme Court dismissed Bengaluru-based Rapido's plea against the Bombay High Court's order suspending its services for operating without having procured a licence from the Maharashtra government after the latter banned non-transport vehicles being used for aggregation and ride-pooling, citing concerns for passengers' safety and security. The company has encountered such challenges in Karnataka as well due to the lack of licences. Additionally, in October 2022, Uber stopped its bike taxi service in Nagpur, following Ola and Rapido taking similar measures, after the city RTO issued notices against the operation of such services without a licence, reported TOI.

Commercial Use of Private Bikes: A Safety Problem

Such bans by various state governments appear to have resulted primarily due to safety reasons in the absence of any legal provisions to allow bike taxis to ferry passengers. "Police conduct background checks for auto and cab drivers who drive yellow plate vehicles, which ensure safety, especially for women. This is not the case with bike taxis as it does not come under any regulation," said Ashish Kundra, the principal secretary in the Delhi government's department of transport, reported ET.

However, bike taxis continue to be operational in other states such as Goa, West Bengal, Andhra Pradesh, Punjab, Haryana, Bihar, Gujarat, Madhya Pradesh and so on. In fact, the Telangana Gig and Platform Workers Union (TGPWU) and Telangana State Taxi and Drivers Joint Action Committee (TSTDJAC) recently urged the state government to stop private motorbikes from being used as taxis, claiming their growing popularity harmed the business of auto-rickshaws and cab drivers.

Drivers, Passengers: Unfortunate Collaterals

Bike taxis such as those run by Ola, Uber and Rapido have found widespread appeal with consumers for providing cheap and convenient last-mile connectivity from bus and metro stations, especially while navigating India's infamous traffic jams. With bans being imposed on these services in recent time, consumers have taken to Twitter to express their disappointment. "Why common people always have to suffer. The bike taxi was the most convenient and economical way of transport for common people this ban should be lifted," wrote one user. "A bike taxi consumes less road space than a car," said another.

Media reports have also pointed out the confusion and distress of bike taxi drivers, who initially didn't receive any communication about the bans from their employers and have now found themselves unemployed overnight, with the threat of hefty fines and licence suspension hanging over them in case they continue ferrying passengers.

In such circumstances, many are hoping for a dialogue between the government and industry stakeholders to arrive at an equitable solution. Until then, the future of bike taxi operators hangs in the balance.

Soumya Duggal

Former Feature Writer

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

Senior Citizen-Focused Geri Care Health Secures USD 13 Mn Funding from InvAscent

With the raised funds, the chennai-based startup aims to expand Geri Care's services across key cities in Southern India, including Bengaluru, Hyderabad, Kochi, and Coimbatore.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

News and Trends

Veloce Opportunities Fund Surpasses INR 140 Crore Milestone, Targets INR 200 Crore Corpus

The fund has secured commitments exceeding INR 140 crores, including a INR 40 crore green shoe option, on its way to achieving its INR 200 crore target corpus in the coming months.

Science & Technology

How Can Marketers Use ChatGPT? Here Are the Top 11 Uses.

With the recent developments in AI and the popularity of ChatGPT, you may want to integrate AI into your marketing practices. Find out how.