Delhi govt. halts bike taxi services; Ola, Uber, Rapido drivers to be impacted

The government had previously warned that bike taxi services were in violation of the Motor Vehicles Act, 1988, which would make aggregators liable for a fine of ₹1 lakh

Citing violations, the Delhi Transport Department has imposed diktats on the functioning of bike taxi services. App-based aggregators such as Ola, Uber and Rapido are asked to stop plying bike taxis on the road without commercial permits, warning that any violation will result in penal action, according to a notice issued by the Department.

The government said running bike taxis -- wherein private bikes are used by passengers for hire -- in Delhi without a proper commercial license would be considered a violation of the Motor Vehicles Act, 1988. The 2019 Amendment to the Act again made it clear that aggregators cannot operate without a valid licence.

“It has been brought to the notice that two-wheelers having non-transport (private) registration mark/numbers are being used to carry passengers on hire which is a purely commercial operation and a violation of Motor Vehicle Act, 1988,” the transport department said.

Any violation of the decision will result in a first offence penalty of ₹5,000 under Section 192 of the Act; second or more offences will lead to fines of ₹10,000, impounding of the vehicle and even imprisonment. “In addition, the driving license of the driver will be suspended for a minimum period of three years,” the notice said.

The department noted that digital platforms are facilitating taxi service operations through the medium of an app, and are thereby taking on the role of an aggregator which stands in contravention of Section 93 of the Act, making them liable to penalties up to ₹1 lakh. “Accordingly, it is directed to immediately stop such kind of activities to avoid prosecution and penalty, etc.”

App-based aggregators like Uber, Rapido and Ola have faced growing scrutiny. Earlier this month, the Supreme Court upheld the Maharashtra government’s stance on refusing to grant a commercial license to the aggregator Rapido. Pune’s Regional Transport Office had rejected Rapido’s plea for a license on December 2021, the SC bench noted, and the Motor Vehicle Act necessitates a license for aggregators to function.

Bike taxis often present as a cheaper alternative to cars especially during surge pricing.