Delhi Bans Bike Taxi Services, Impacting Uber Moto and Rapido

The Delhi Transport Department has issued a notification requiring all bike taxi firms to cease operations immediately. A public notice issued by the special commissioner of the Delhi Transport Department indicates that anyone found guilty of doing so will be subject to fines of up to Rs. 10,000 and vehicle impoundment under Section 192 of the Motor Vehicles Act. The Supreme Court will also suspend the perpetrator’s licence for three months. In addition, the notice states that internet platforms offering two-wheeler services will be charged under Section 93 and fined Rs. 1 lakh. This will result in significant income losses for companies like Ola, Rapido, and Uber that offer bike taxi services.

Rapido was recently entangled in a legal dispute with the government after it was discovered that the platform lacked the required licence to offer its services. The subsequent attempt to contest the order was dismissed by the court. According to sources, the Delhi Traffic Police Department is already monitoring online platforms such as Uber Moto, Rapido, and Ola to ensure that they adhere to the regulations and do not repeat the violations.

The government intends to propose new legislation that would allow cab services in Delhi to use electric two-wheelers if they meet the necessary safety standards. Although these regulations are still in the draught stage, their approval will take at least two to three months, which means that two-wheeled taxis with any powertrain are currently prohibited in the city. There have been no reports on whether other cities will follow Delhi’s lead or not. Delhi is the only city in the country to have implemented these standards at this time.