Setback to Ola, Uber, Rapido as Delhi govt bans use of bike taxis

In a move that will come as a setback to aggregators that offer bike taxis like Ola, Uber, and Rapido, the Delhi government banned the use of "two-wheelers having non-transport (private) registration mark/numbers" for taxi services.

According to media reports, the transport department warned that those violating the order stand the risk of losing the license for three years apart from a fine of Rs. 5,000.

A notice from the transport department read: “It has been brought to the notice that two-wheelers having non-transport (private) registration mark/numbers are being used to carry passengers on hire which is purely commercial operation and a violation of Motor Vehicle Act, 1988.”

The department warned that violation of this order for the first time will attract a fine of Rs 5,000. Second or subsequent violation will result in a fine of Rs 10,000 and imprisonment.

"The driving license of the driver will be suspended for a minimum period of three years,” the notice said.

The transport department warned that aggregators like Uber, Ola, and Rapido which are facilitating bike taxi services will be imposed a fine of Rs 1 lakh in case of violation of this order.

Earlier this month, the Supreme Court refused to grant relief to bike taxi aggregator Rapido against the Maharashtra government's refusal to grant licence to it.

It had noted that amendments made to the Motor Vehicles Act in 2019 made it clear that aggregators cannot operate without a valid licence. A bench of Chief Justice D.Y. Chandrachud and Justices PS Narasimha and Justice JB Pardiwala noted that Pune's Regional Transport Office had rejected its plea for licence on December 21.

—With PTI inputs