Reports indicate that Delhi government has suspended bike taxi services provided by Ola, Uber, and Rapido.
- ByStartupStory | February 20, 2023
According to reports, Delhi’s transport department has directed bike aggregators such as Ola, Uber, and Rapido to discontinue their taxi services in the national capital. The department had previously advised against the use of bike taxis on Delhi’s roads, stating that it violated the Motor Vehicles Act of 1988 and that aggregators could be fined up to Rs 1 lakh.
According to a public notice by the transport department, employing two-wheelers for commercial purposes is against the Motor Vehicles Act of 1988. The first instance of such a violation could result in a fine of Rs 5,000, while a second offence could lead to imprisonment of up to a year and a fine of Rs 10,000.
The transport department’s public notice states that any driver who uses a two-wheeler for commercial purposes will face a three-month suspension of their license. The notice also highlights that certain app-based companies are misrepresenting themselves as aggregators, which contravenes the 1988 act, and will be penalized with a fine of Rs 1 lakh.
In a recent development, the Supreme Court denied relief to Rapido, a bike taxi aggregator, against the Maharashtra government’s decision to deny them a license.
According to a recent development, a bench led by Chief Justice D.Y. Chandrachud has stated that the 2019 amendments to the Motor Vehicles Act make it evident that an aggregator cannot operate without a valid license. Justices P.S. Narasimha and J.B. Pardiwala were also part of the bench that made this observation. The bench further noted that Rapido’s plea for a license was denied by the Pune RTO in December 2022.
Rapido, the bike taxi aggregator, approached the Supreme Court after the Bombay High Court dismissed its appeal against the Maharashtra government’s decision to deny the company a license for its two-wheeler bike taxi service. The apex court granted the company the freedom to appeal against the January 19 notification issued by Maharashtra in the high court and urged the high court to review it without being affected by the previous order.
The Maharashtra government had previously asserted that there was no framework for licensing bike taxis, nor any guidelines on fare structure. The government maintained that a panel had been created to formulate regulations for bike taxis in the state. During the hearing, the high court directed Rapido to halt its bike taxi services, as it was operating without obtaining a license from the Maharashtra government.
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