Huge blow for Ola, Uber, Rapido; Delhi govt halts bike taxis
Huge blow for Ola, Uber, Rapido; Delhi govt halts bike taxis
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NEW DELHI: Claiming violations, the Delhi Transport Department has put diktats on the operating of bike taxi services. According to a notification released by the Department, app-based aggregators like Ola, Uber, and Rapido are urged to avoid operating bike taxis without business licences. They are also warned that any violations would result in penalties.

The government said, operating bike taxis in Delhi without a valid commercial licence would be a violation of the Motor Vehicles Act of 1988. These services allow users to use private bikes for hiring. Aggregators are not permitted to operate without a current licence, as was made abundantly clear by the 2019 Amendment to the Act.

The motor vehicle act of 1988 is being broken, according to the transport department, which claims that two-wheelers with non-transport (private) registration marks and numbers are being utilised to carry passengers on rent.

According to Section 192 of the Act, any infraction of the decision carries a 5,000 penalty for the first offence; subsequent offences carry fines of 10,000, the impounding of the vehicle, and potentially jail time. The letter stated that the driver's licence will also be suspended for a minimum of three years.

The department pointed out that by acting as an aggregator and supporting taxi service operations through an app, digital platforms are in violation of Section 93 of the Act and subject to fines of up to Rs. 1 lakh. "Thus, it is instructed to cease such kind of activity immediately to avoid prosecution and penalties, etc."

App-based aggregators like Ola, Rapido, and Uber have come under increasing criticism. The Maharashtra government's decision to deny the aggregator Rapido a business licence earlier this month was upheld by the Supreme Court. The SC bench noted that Rapido's request for a licence had been denied by Pune's Regional Transport Office on December 20, 2021, and that the Motor Vehicle Act requires a licence for aggregators to operate.

Taxis on bikes are frequently more affordable than in cars, especially during peak hours. Due to a lack of rules and regulations, the transport department does not currently grant business permits to two-wheelers. These private taxis do not have the yellow plates with PSV badges that are required by the Act for taxis. Authorities have also issued diktats due to worries over drivers' improper identification and the safety of passengers, particularly women.

A draught aggregator policy for two-, three-, and four-wheelers will soon be released, according to transport minister Kailash Gahlot on Monday. In a tweet, he stated that the aggregator policy for 2W (two-wheelers), 3W (three-wheelers), and 4W (four-wheelers) was nearing completion and would soon be implemented, assisting them in applying for licence grants under the new scheme.

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