Bike taxis could become legal in Delhi, Maharashtra

The Ministry of Road Transport and Highways (MoRTH) has issued an advisory regarding the legality of bike taxis in India. The advisory clarifies that motorcycles fall within the definition of contract carriages as per section 2(7) of the Motor vehicles (MV) Act, 1988.

1. Bike taxis more affordable than car taxis
2. Apart from Rapido, Uber Moto is also an option

While some states like Goa, Telangana, Rajasthan and Uttar Pradesh have already permitted bike taxis, other major cities like Maharashtra and Delhi have banned them. Meanwhile, bike taxi services in India have been expanding in Tier 2 and Tier 3 cities.

With the advisory, the MoRTH hopes that all states and union territories will start accepting and processing applications for bike taxi permits. This can lead to solutions for connectivity issues, reduce traffic congestion and increase affordable commuting options. Furthermore, the advisory also aims to protect bike taxi riders from being fined due to licensing issues.

Rapido, which holds 60 percent market share in the bike taxi industry, facilitates over one million bike taxi rides per day across India and contributes to multiple employment opportunities. Another player in this industry would be Uber Moto.

Pavan Guntupalli, co-founder of Rapido stated, “We appreciate the advisory issued by MoRTH on bike taxi regulation, as it provides much-needed clarity for the entire industry. We are hopeful that all states and UTs will start accepting and processing applications for granting permits to bike taxis.”