Swiggy and Zomato refute Delhi RTO’s bike-taxi ban order interpretation as a ‘misunderstanding’
- ByStartupStory | March 2, 2023
Swiggy and other food delivery apps have lodged a complaint with the Delhi government over the issuance of penalties to their two-wheeler riders under the guise of a ban on bike taxi services in the capital city. These apps have also requested the government to provide clarity on the directive, stating that the notice has been misconstrued, as the prohibition only applies to bike taxi operators.
Swiggy has written a letter to the government stating that food delivery riders are receiving fines of up to Rs 15,000, supposedly due to the ban on bike taxi services. Swiggy claims that the recent regulatory changes on bike taxi services in Delhi have caused confusion and disrupted food and quick commerce delivery aggregators. According to a Swiggy spokesperson, “their delivery executives are being unfairly issued challans, despite the fact that the ban only applies to bike taxi service providers”
In a letter to the government, Dinker Vashisht, Group Vice President of Swiggy for Public Policy, Regulatory, and Sustainability, expressed concern about the misinterpretation of regulations by officials at the Regional Transport Office (RTO). Vashisht stated that “RTO officials have been issuing challans to delivery partners who are operating for last-mile delivery aggregators such as food delivery aggregators and e-commerce operators, despite the regulations not being applicable to them. This has resulted in a disruption of services and confusion among delivery partners, who are now hesitant to provide their services due to the fear of being penalised and harassed while on duty”. Vashisht urged the government to intervene urgently to address this issue.
According to a spokesperson from Zomato, “there is some misinterpretation on the ground regarding the notice issued by the Delhi transport department cautioning against bike taxis operating on Delhi roads”. Although the notice is only for passenger vehicles, the spokesperson acknowledged that confusion exists.
The use of two-wheelers for commercial purposes is in violation of the Motor Vehicles Act, 1988, and the first offence can result in a fine of Rs 5,000. A second offence could lead to a fine of Rs 10,000 and imprisonment for up to a year, as well as a three-month suspension of the driver’s licence. The department’s public notice warned that some app-based companies are portraying themselves as aggregators in violation of the 1988 act, and this will be punishable with a fine of Rs 1 lakh.
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