Delhi Government Bans Ola, Uber and Rapido Bike Taxi Services

The Delhi transport administration has announced an immediate ban on bike taxis in the capital city. With this decision coming into effect, several popular apps, including Ola, Uber, and Rapido, reportedly have to halt their bike taxi services. According to the administration, using two-wheelers with non-transport (private) registration markings or numbers to transport passengers violates the Motor Vehicles Act, of 1988. The aggregators violating this law are liable for a fine of Rs 1 lakh.  Hence, it is illegal to operate a personal vehicle as a business taxi. According to reports, the government will charge a fine of Rs 5,000 if companies like Ola, Uber, and Rapido continues to offer such illegal bike taxi service in Delhi. Moreover, a fine of Rs 10,000 and a jail term will be charged if the offence is committed a second time or later.

According to several reports, the strictness of the Delhi traffic police department has been increased and the Ola, Uber, and Rapido bikes have already started being checked. If any of the bike taxi service providers will be found repeatedly committing offence regardless of warnings, the driver's licence will be suspended for at least three years.

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Popular service providers like Ola, Rapido, and Uber, offering bike taxi services in the capital, haven't reacted to the notice yet. However, we believe that this move of the government will massively impact the business of these companies. According to industry reports, the ban will leave several drivers jobless. On the other side, the decision will hamper the daily commute of many customers who use bike taxi services offered by Rapido, Ola, and Uber. 

Due to affordability and hassle-free movement in traffic, two-wheelers witness maximum demand for transportation services. With the immediate effect of the ban on bike taxi services in Delhi, people will have to either go for a pricey cab ride or look for another option. The Delhi government's recent ban applies to only motorbikes. Cab services and auto-rickshaws have not been prohibited yet. 

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Reports suggest that heavy fines for violating the ban will cause fear among companies running illegal two-wheelers on purpose on the roads of the capital city. As mentioned, there is no update on the reaction of popular bike taxi service providers, but we anticipate them to respond soon.