Putting the brakes on bike taxis: Delhi’s bike taxi ban and its implications

Why did the Delhi government decide to ban bike taxi services in the city, and why and how do bike taxi drivers continue to provide services in the city in spite of the ban?

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BIKE taxis are a popular mode of transportation for commuters in many cities in India. They offer a quick and affordable option for people who need to travel short distances.

The bike taxi market in India was valued at US $50 million in 2021. Only in Delhi, between 5 lakh and 7.5 lakh trips are taken on bike taxis every week.

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Why did the Delhi government ban bike taxis?

On February 21, the Delhi Transport Department (DTD), noted via a public order that bike taxis in Delhi violate the Motor Vehicle Act (MVA), 1988, as the Act prohibits using two-wheelers with private registration for commercial purposes. Therefore, the DTD decided to impose a ban on the operations of bike taxi aggregators such as Rapido, Ola and Uber in the national capital area, and prohibited the running of bike taxis.

It is claimed that the ban was informed by safety concerns and lack of a legal framework regulating such taxi services.

The ban on bike taxis in Delhi came as a surprise to many commuters who had come to rely on them. Bike taxis are seen as a convenient option, especially for those who need to travel short distances during the rush hour, when traffic is at its worst. They are also popular among young professionals looking for a faster and more affordable alternative to traditional taxis.

Bike taxis offer a much-needed alternative to traditional taxis and auto-rickshaws, which are often expensive and unreliable. They are also seen as a way to reduce traffic congestion in the city, which is a major problem in Delhi.

Since a substantial number of taxi trips in the city involve a single passenger, bike taxis also generate less per passenger emissions than other modes like auto-rickshaws and taxi cars.

The Delhi government's decision to ban bike taxis was apparently based on several factors.

Firstly, there were concerns about safety. Bike taxis are inherently more dangerous than other modes of transportation because they are exposed to the elements and offer less protection to passengers in the event of an accident.

Secondly, there was a lack of clarity on the legal framework for bike taxis. The Delhi government argued that bike taxis were not authorised under the Motor Vehicles Act, which governs all forms of transportation in the country. This meant that bike taxi operators were not subject to the same regulations as other transportation providers, such as taxis and auto-rickshaws.

Another concern may be that bike taxis are not always insured for passenger transport. While some operators have obtained insurance coverage, it is not a uniform or standard requirement, which means that passengers may not be adequately protected in the event of an accident or injury.

Worried that bike taxi services could be exploited by unscrupulous operators who could put riders at risk, the government banned bike taxis to create a safer environment for transportation services in the city.

The DTD is reportedly working on a policy to govern bike taxis. As per the policy, which is in its draft stage, only electric bikes may be allowed to operate as bike taxis.

As per the DTD notice, according to Section 192 (using vehicle without registration) of the MVA Act, the first offence for any breach of the decision carries a fine of ₹5,000; further offences carry fines of ₹10,000, the impounding of the vehicle, and even imprisonment. The notice states that the driver's licence would also be suspended for a minimum of three years.

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What has been the effect of the ban?

The Delhi government has reasoned that bike taxis are not safe for passengers, as they do not meet the safety standards as other forms of transportation. They also argue that bike taxis do not have the necessary licenses and permits to operate in the city.

Aggregators are prohibited from operating without a valid licence, as per the 2019 Amendment to the MVA Act. The notice from the DTD states, "It has come to our attention that two-wheelers with non-transport (private) registration marks and numbers are being used to convey passengers on hire, which is a solely commercial operation and a violation of the MVA, 1988."

In spite of the ban, bike taxi services continue to be available and can be availed in Delhi. Between the third week of February and the first week of March, the Delhi police issued 128 challans to bike taxi drivers, and collected ₹6.5 lakhs in penalties from them for violating the ban; this number must have surely gone up ever since.

In conversations with bike taxi drivers, The Leaflet's found that they have have been forced to operate clandestinely by the ban.

On plain sight, it is virtually impossible for anyone to tell a bike taxi from a normal bike, and this works in the bike taxi driver's favour. This is because only by checking the phone of the driver and the passenger of a bike taxi trip can one ascertain that it is covered by the ban.

This means that often, bike taxi drivers avoid routes where they know there is police patrolling, and don't keep their cell phones out on the bike, like they used to earlier. This is because police officers, on catching them, check their phones to see the bike taxi app operating as evidence of the ban being violated by the driver (even though the police cannot arbitrarily check anyone's phone without just cause).

Many of them have removed cell phone holders off the frames of their bikes, and keep their cell phones in their pockets. They also often tell their passengers to not keep their phones out in their hands. Further, they prepare them at the beginning of the trip to conceal, in the event of being caught by the traffic police, the commercial nature of the trip and lie that the driver is a friend or sibling of theirs dropping them somewhere.

Due to not being able to use their phones for following the route for the booked ride, drivers either rely on their personal knowledge of the city, or ask the passenger to expressly provide them directions to guide them to their destination.

In conversations with The Leaflet, bike taxi drivers have also revealed that the Delhi traffic police, in order to catch them red-handed, have booked their services through the apps, and issued challans when they show up for the pick-up!

At least two drivers confirmed that while Rapido has told drivers not to worry about the ban, and that the company would take care of its 'ride partners' and pay their challans, these assurances have only been given unofficially, and there is nothing on record. This only adds to the bike taxi drivers' predicament.

For them, the ban means loss of livelihood. Many people who operate bike taxis may have invested significant time and money into their businesses, and the ban could force them to shut down. This could be particularly detrimental for those who do not have alternative sources of income or job opportunities. This is why they continue to operate under the cloak of illegality and in spite of the several inconveniences it engenders.

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What have been Rapido's legal struggles elsewhere?

In January, the Maharashtra state government refused to grant licence to Rapido's bike taxis (Rapido is India's first and largest bike taxi app), on the ground that there were no legal guidelines on their licensing, safety and fare structure, and "in order to ensure road safety of the general public and passengers at large". The Bombay High Court also failed to provide any relief to the company, stating that the state government was authorised to issue such an order.

Rapido went to the extent of approaching the Supreme Court, which directed it back to the high court, without overturning the refusal to issue the licence.

In July 2019, a single-judge of the Madras High Court had also banned Rapido on the ground that Tamil Nadu did not have in place any regulations for services such as car pooling, bike taxis and call taxis. However, a division Bench of the court had stayed the single judge's decision in August 2012.

However, it was reported last year that in response to an application under the Right to Information Act, the Tamil Nadu government stated that bike taxis are not permitted to operate in the state, and bike taxi permits are not issued by the government. Regardless, bike taxi services continue to be available in some parts of the state.

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What is the way forward?

Overall, the ban on bike taxis in Delhi and elsewhere highlights the need for careful consideration of new and emerging forms of transportation. While bike taxis have the potential to provide a valuable service, it is important to ensure that they are safe, legal and properly regulated in order to protect the well-being of both passengers and operators.

With the ban in place, the Delhi government may have intended to better regulate the transportation industry as a whole. By establishing clear rules and regulations for all forms of transportation services, the government could ultimately create a safer and more organised transportation system for everyone.

Since many people see bike taxis as a much-needed alternative to traditional transportation options, and there is quite clearly demand for the services in spite of the ban in place, it is important for the Delhi government, and all state governments, for that matter, to expeditiously put in place a policy roadmap to govern these services. The bike taxi industry has the potential to provide a convenient and affordable mode of transportation for people in Delhi and elsewhere.

As such, policymakers and stakeholders should work towards finding a solution that balances these competing interests while ensuring the safety and well-being of passengers. Till then, bike taxi services will continue to operate under the cloak of illegality.