Big Setbacks To Rapido, Uber, Ola, As Delhi Government Bans Bike Taxi Services In The City

Delhi’s transport department has banned the companies such as Rapido, Uber and Ola from operating bike taxis having non-transport (private) registration numbers in the National Capital Region (NCR).

This decision will be a setback to the companies that offer app-based bike taxi services in the city.

The Delhi government has divided the violations into three levels of severity following the ban. The first offence could lead to a fine of Rs 5,000, second violation could incur a penalty of Rs 10,000 and imprisonment of up to one year. The riders will also lose their licence for three months.

The transport department had earlier cautioned bike taxis against plying on the roads of Delhi, warning that it was a violation of the Motor Vehicles Act, 1988.

Failure to comply to this ban would make the companies liable for a fine of Rs 1 lakh as the Act prohibits using two-wheelers for commercial purposes.

The department is currently looking to frame rules, to regulate bike taxis, and have sent them to the law department for vetting, after concerns were raised over the safety and convenience of passengers.

Incidentally, since the introduction of these services, bike taxis gained popularity and became a favoured mode of transportation in the city.

Considering the existing traffic congestions, time and cost concerns, the bike taxi came in as the suitable option for various commuters in the city, in comparison to autos and four-wheeler cabs.

The service became an alternative for individual commuters, for last mile connectivity, especially at metro stations, while also for other short distance travel needs within the city.

The high demand from users also generated opportunities for individuals to engage in bike taxi services, including both full-time and part-time employment options.

However, following the laws mandated, in Delhi, the transport department grants passenger service vehicle badges to commercial drivers after verification.

As the drivers are verified, their vehicles receive yellow number plates. However, through these app-based services, many bike taxis have been running on private registrations, or registered in states like Uttar Pradesh, Haryana or Rajasthan.

The Delhi bike taxi ban comes after multiple states have barred app-based aggregators from plying vehicles other than cars as taxis.

In 2022, Karnataka banned these companies from operating auto-rickshaws as taxis, while Maharashtra refused to grant Rapido an aggregator registration earlier this year.

A bench of Chief Justice DY Chandrachud and Justices PS Narasimha and Justice JB Pardiwala noted that Pune's Regional Transport Office had rejected the company’s plea for licence on 21 December 2022.

The Supreme Court refused to grant relief to the bike taxi aggregator Rapido against the Maharashtra government’s refusal to grant a licence, noting that the amendments to the Motor Vehicles Act in 2019 clarified that the companies could not operate without a valid permission.