The Legalization of Bike Taxis Is under Consideration in Delhi and Maharashtra

The Ministry of Road Transport and Highways (MoRTH) has released an advisory regarding the legality of bike taxis in India. According to the advisory, motorcycles fall under the definition of contract carriages as outlined in section 2(7) of the Motor Vehicles (MV) Act, 1988.

Bike taxis offer a more cost-effective alternative to car taxis. In addition to Rapido, Uber Moto is also available as an option. While some states like Goa, Telangana, Rajasthan, and Uttar Pradesh have already legalized bike taxis, major cities like Maharashtra and Delhi have prohibited them. However, bike taxi services have been expanding in Tier 2 and Tier 3 cities across India.

The advisory from MoRTH aims to encourage all states and union territories to accept and process applications for bike taxi permits. This initiative can address connectivity challenges, alleviate traffic congestion, and enhance affordable transportation options. Moreover, the advisory seeks to safeguard bike taxi riders from fines resulting from licensing issues.

Rapido, holding a 60 percent market share in the bike taxi industry, facilitates over one million bike taxi rides daily across India and generates numerous employment opportunities. Another key player in this sector is Uber Moto.

Pavan Guntupalli, co-founder of Rapido, commented, “We welcome the advisory issued by MoRTH on bike taxi regulation, as it provides much-needed clarity for the entire industry. We are optimistic that all states and UTs will commence accepting and processing applications for granting permits to bike taxis.”