Government Allows Bike Taxis, But State Approval Needed for Rapido and Uber

The Ministry of Road Transport & Highways (MoRTH) has issued fresh guidelines for states to permit the use of non-transport motorcycles for passenger journeys through aggregators like Rapido, Ola, and Uber. The guidelines aim to reduce traffic congestion and vehicular pollution, provide affordable passenger mobility, hyperlocal delivery, and create livelihood opportunities.

States may impose fees on aggregators for issuing authorizations to operate private motorcycles legally. Aggregators must ensure drivers have valid licenses, insurance, and meet safety standards. The guidelines provide a legal framework for permitting operations using private motorcycles, giving states the authority to regulate bike taxis.

Legal experts see this as a positive step towards regularizing the sector, providing legitimacy, investor confidence, and improved last-mile mobility. While the guidelines do not mandate states to permit bike taxis, they offer a clear legal footing to do so under the Motor Vehicles Act.

Rapido and other players are awaiting state decisions to operationalize this initiative. The guidelines could be a lifeline for the sector, especially in urban areas where affordability, congestion, and last-mile connectivity are crucial.

Uber emphasized the importance of timely adoption by states for uniform implementation and predictability. Karnataka's ban on bike taxis has impacted Rapido's operations, while Maharashtra has allowed electric two-wheeler taxis.

Bike taxis play a significant role in Rapido's revenue, offering affordable transport options. Bike taxi drivers in Karnataka are urging the state to lift the ban and introduce an inclusive policy framework.

According to the source: Mint.