Delhi bans bike taxi providers like Rapido, Uber Moto

A public order of the Delhi Transport Department noted bike taxis in Delhi-NCR violated the Motor Vehicle Act, 1988, as the Act prohibits using two-wheelers for commercial purposes. As per the latest order, the Delhi Transport department has banned Rapido, Uber and Ola from operating bike taxis in the country's national capital with aggregators violating the order to be penalised with a fine of Rs 1 lakh.

According to the bike taxi aggregators, each rider receives a daily wage of Rs 300-Rs 500 a day for short-distance travels ranging from 3 to 8km. In many Indian cities consumers, especially office goers, in the metros have been rooting for bike taxis, unhappy with the monopoly and service rendered by taxi and rickshaw operators who refuse to take passengers for short last-mile trips. This is further compounded by the fact that metro cities typically have much more congested roads especially during peak rush hour traffic.  

Currently, the states that continue to allow bike taxis include Goa, Andhra Pradesh, Haryana, Gujarat, Telangana, West Bengal, Punjab, Rajasthan, Bihar and Madhya Pradesh. 

According to research analysts, the Indian bike taxi market is expected to reach $1,478 million by 2030. This ban is likely to have a big impact on players like Rapido which has raised over $300 million since its inception with big names like WestBridge Capital, TVS Motor, Shell Ventures and Nexus Ventures backing this last mile mobility company.  Over 30 million consumers have hitched a ride on Rapido’s ride-hailing app and it claims to deliver over a million rides across 100 plus cities daily.

"Bike-taxi addresses urban mobility needs and is a relevant solution for mobility as a service helping consumers negate the rising fuel costs with lower prices," a transport industry expert, requesting anonymity, told Autocar Professional. "Easy manoeuvrability gives a big push for last-mile connectivity.  Paratransit transportation services such as bike taxis have made transportation more affordable and accessible."