Bike Taxis Poised for Legalization Across India, MoRTH Issues Advisory

Key Highlights:

• MoRTH's advisory categorizes motorcycles as contract carriages.
• Delhi and Maharashtra will soon get legal approval for bike taxis.
• Rapido,Ola, Uber anticipate significant expansion opportunities.

In a significant stride towards redefining urban mobility, the Ministry of Road Transport and Highways (MoRTH) has issued a groundbreaking advisory, sparking potential legalization for bike taxis across India. This move aims to address the disparities in regulations that currently exist among states, particularly in major cities like Delhi and Maharashtra.

Legal Clarity: Motorcycles as Contract Carriages

The advisory from MoRTH provides crucial clarity by categorizing motorcycles as contract carriages under section 2(7) of the Motor Vehicles (MV) Act, 1988. This legal definition lays the foundation for standardizing regulations nationwide, marking a pivotal moment for the bike taxi industry.

The ban’s background

Bike taxi services faced bans in Delhi and Maharashtra due to non-compliance with motor vehicle regulations, notably the Motor Vehicles Act, 1988. The utilization of regular bikes for commercial purposes contravened the law. The Delhi government warned of penalties, including fines of up to Rs 10,000 and possible license suspension for violators operating without proper commercial licenses.

State Disparities

While Goa, Telangana, Rajasthan, and Uttar Pradesh have already embraced bike taxis, Delhi and Maharashtra have maintained bans on these services. The advisory seeks to bridge this gap, urging uniformity in regulations to create a cohesive ecosystem for bike taxi operations.

Industry Impact

Rapido, a dominant player with a 60 percent market share in the bike taxi industry, sees this advisory as a catalyst for expansion. Facilitating over one million rides daily across India, Rapido anticipates increased opportunities for growth and employment within the sector.

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.”

Apart from Rapido, Ola, Uber are other dominant players in the bike taxi industry in India.

Addressing Urban Challenges: Connectivity, Traffic, and Affordability

Beyond legal nuances, the advisory addresses broader urban challenges. By promoting bike taxis, the government envisions solutions to connectivity issues, reduced traffic congestion, and increased affordable commuting options. The formalization of bike taxi status aims to protect riders from fines related to licensing issues.

The Road Ahead: Transforming India's Transportation Landscape

As states and union territories gear up to implement the MoRTH's directive, the stage is set for a transformative shift in India's transportation landscape. The potential legalization of bike taxis brings with it promises of innovation, job creation, and sustainable urban mobility solutions.

CarBike360 Says

The MoRTH advisory not only provides legal clarity but also sets the wheels in motion for a more accessible, efficient, and regulated bike taxi industry, positively impacting commuters and service providers alike.