INTRODUCTION
India’s bike taxi industry is plagued by issues. Organisations offering bike taxi services haven’t yet established a solid foundation due to problems like unclear rules governing bike taxis, refusal of authorization to operate by transportation authorities, and time-consuming processes for acquiring a business license.
In India, Goa has had the practise of utilising a two-wheeler as a taxi since 1981. In order to run motorcycle taxis in the state, the Goa Motorcycle Taxi Riders Association was established even earlier, in 1980. In India, the idea itself has not yet gained a lot of popularity (as opposed to the cab aggregation industry, which has expanded in India). However, no matter which region of the country one may be in, it is simple to see that two-wheelers are a common sight on Indian roadways after taking a quick look at the country’s roads. It is surprising that India does not have a fully developed bike taxi industry comparable to or even close to the cab aggregation industry in India given the practical usage of two wheelers for transportation purposes and the ease of accessibility, which still has not fully found its way to four wheelers.
RULES FOR BIKE TAXIS IN DELHI
The Delhi government has forwarded bike taxis to the law department for review as it works to develop regulations for them. The Motor Vehicles Act of 1988 is allegedly broken by two-wheelers used as taxis, according to the transport department. If bikes continue to be used as taxis in the Capital, the cab aggregators may be penalised one lakh rupees, according to officials.
Because they are less expensive than standard four-wheeler taxis or auto-rickshaws, bike taxi services are now offered by three cab aggregators: Ola, Uber, and Rapido.
According to a representative of the transport department, two-wheelers, including bike taxis, cannot be utilised for commercial reasons under the Motor Vehicles Act. “The first offence of breaking the law may result in a fine of 5,000 for the driver, while a second offence may result in a fine of 10,000, up to a year in jail, and the impoundment of the vehicle. According to the Supreme Court’s directive, the driver’s driver’s licence will be suspended for a minimum of three months, the official added.
Another employee from the transport department is a cab aggregator who provides bike cab taxi services in violation of section 93 of the Motor Vehicles Act, which is punishable by a punishment of up to one lakh rupees under section 193(2) of the Act.
Bike taxis set to make a comeback on Delhi roads
As soon as the aggregator policy is passed by the Arvind Kejriwal-led AAP administration in a few months, bike taxis are anticipated to return to Delhi’s roads.
The aggregator policy, which would include guidelines for bike taxis as well, had been approved by the legal department. According to Transport Minister Kailash Gahlot, the strategy is likely to be implemented within a few months.
In February, Delhi’s bike-taxi services were put on hold by the transport department, and drivers who disobeyed were subject to punishment.
Invoking the provisions of the Motor Vehicles Act, 1988, the authorities issued a punishment of Rs 5,000 for the initial infringement. A second offence could result in a Rs 10,000 fine and up to a year in jail.
According to the new policy, aggregators with electric fleets will be permitted to operate these bike taxis, and electric bikes will be given preference.
A driver would need to obtain a commercial service badge after the police had confirmed their background.
“Their two-wheelers will then be issued the yellow commercial numberplates,” the official said. “But these things will be implemented only after the policy is approved by the competent authority. In the current form, it is illegal to operate bike taxis,” he said.
He said the policy would need final approval from the ministry concerned and the LG.
Ola, Uber and Rapido ply petrol and electric motorcycles in the National Capital Region.
A bike taxi driver, who did not wish to be named, said: “Most of us have avoided entering Delhi because of the challans. We are ready to take permission (to ply bike taxis), but a rule needs to be in place for us.” The official quoted above said that the government was not against bike-taxi services, but only wanted to regulate them for the safety of the people.
The Internet and Mobile Association of India had earlier requested the government to allow bike taxis because they provided efficient last-mile connectivity with public transport, reduced traffic congestion and created employment opportunities.
Legality of bike taxis in India
The legal position in India about bike taxis is a slightly complex one. The Motor Vehicles Act, 1988 (“Act”) defines a vehicle used for commercial purposes as a “contract carriage.” Under section 2(7), a contract carriage is defined as:
“…a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum – (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes – (i) a maxicab; and (ii) a motorcab notwithstanding that separate fares are charged for its passengers;”
The above definition applies to a vehicle used for commercial purposes in India. The definition of a contract carriage uses the term “Motor Cab” which is defined under section 2(25) of the Act as “…any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward”.
Further, the word ‘motor vehicle’, has also been defined under Section 2(28) of the Act and states that any vehicle with less than 4 wheels will not be considered a ‘motor vehicle’ under the Act.
Reading the above three definitions together, it can be construed that that a motorcycle being a two-wheeler falls outside the ambit of the definition of a “motor cab” and a “motor vehicle”.
Hence, it can be said that the usage of motorcycles for a commercial purpose, under the ambit of a carriage contract is not technically recognized under the laws of India.
The issue is known to the government, and over the years reports from various government ministries have been released on it. The State Transport Department may grant two-wheeler taxi permits on the lines of those for city taxis, the Central Government stated in its position on the topic of bike taxis in “The Report of the Committee constituted to review issues relating to taxi permits” from 2016. Citizens will be provided with an affordable and practical last-mile connectivity solution thanks to this. It is strongly advised that current private bikes be made usable for this type of transportation to help make better use of idle assets, and state governments might also take into account an online option to make private bikes usable as taxis.
Bike sharing taxi policy guidelines were also suggested in the 2016 report of the Committee established by the Ministry of Road Transport and Highways to support urban mobility. In order to alleviate India’s severe last mile connectivity issues, among other things, it was advised that State transport departments enable two-wheeler taxis. Additionally, it suggested using personal bikes for these purposes and providing an online option to turn personal bikes into taxis. Additionally, the 2018 NITI Aayog report on shared mobility mentions bike sharing as a cheap option for first and last mile connection and offers a number of bike sharing implementation strategies.
The Central Government has recommended that bike taxis be permitted for commercial use, and it has also directed the State Governments to consider allowing private bikes to be converted into taxis so that they can be used for commercial purposes and the regulations surrounding such. However, there is no central legislation governing bike taxis. Currently, it is up to each state’s government to decide whether or not bike taxis are legal.
State specific regulations
On the basis of the above recommendation, various state governments such as those in Mizoram, West Bengal, Haryana and Goa have made regulations in order to regulate bike taxis.
One of the first organisations to permit the use of bike taxis in 2016 was the State Transport Authority of Mizoram. Two-wheelers must be 125 cc or greater in order to operate a bike taxi locally, and the driver must wear a yellow helmet (headgear) with the word “Taxi” plainly printed in red on the front side. The registration plate must likewise be yellow. Once a permit has been issued, any scooter or motorcycle that is under two years old may be operated as a bike taxi.
The West Bengali government has approved bringing bike taxis under the purview of carriage contracts after receiving numerous bids to do so. Bicycle taxis can now be registered as contract carriage in accordance with the Act after the West Bengali government requested suggestions from the general public. This decision was made in light of the suggestions obtained and the Central Government’s recommendation. According to the West Bengal State Traffic Department’s regulations, the driver must give the passenger a helmet, and the passenger is only allowed to have a small amount of luggage with them. Additionally, there are geographical restrictions on where bike taxis can operate in West Bengal.
Similar to this, the Government of Haryana has approved the operation of bike taxis and enabled two-wheelers to be included in the definition of a contract conveyance based on a recommendation from the Central Government.
While certain Indian states permit bike taxis, this is not the case in the majority of them. In 2016, the Karnataka Road Transport Department outlawed the use of bikes as taxis on the grounds that they were using white number plates, which are only permitted for personal cars and not for commercial ones. Further instructions from the Regional Transport Authority directed aggregators to contact the Road Transport Authority of India and obtain the necessary licences to run such bike taxis.
In this background, in mid-2021, with the aim of providing first and last mile connectivity for public transport and to generate self-employment opportunities, the Government of Karnataka has introduced the Karnataka Electric Bike Taxi Scheme, 2021 (“E-Bike Scheme”). An important aspect to note here is the applicability of the E-Bike Scheme, which is limited to (i) agents and entities exclusively engaged in the business of providing electric motor cycles or electric bikes to persons or passengers desiring to hire the same for undertaking a journey and (ii) an individual who himself is engaged in the business of providing his own electric motor cycle or electric bike to persons or passengers desiring to hire the same for undertaking a journey. As is seen from the above two points, the E-Bike Scheme is only applicable with respect to electric motor cycles or bikes and not a non-electronic two-wheeler vehicle. The E-Bike Scheme puts in place specific rules for operation of such e-bikes, such as a requirement for a license to operate, a maximum distance limit of 10 kilometres between the origin and destination for a trip, barring persons under the age of 15 from hiring such electric bikes and specifications for helmets and reflective jackets to be worn by the drivers, among others. The E-Bike Scheme additionally requires that the name and details of the service provider or the individual providing the service be affixed on the exterior of the electric bike and also mandates that any service provider who operates more than 50 bike taxis adopt GPS tracking of the vehicle.
It is not unexpected to find that the Karnataka government has made it clear that electric two-wheelers may be used as bike taxis. Through rules and regulations during the last few years, the Karnataka government has promoted the use and production of electronic cars. In reality, the Karnataka Chief Minister said in the state’s budget statement for 2017–18 that Bengaluru was to become the nation’s capital of electrified vehicles. Following this budget speech, the Karnataka Electric Vehicle and Energy Storage Policy, 2017, was released with the goals of reducing reliance on fossil fuels and lowering pollution levels, creating electronic vehicle manufacturing facilities, and incentivizing startups to create business models centred on supporting economic applications for electronic vehicles. The E-Bike Scheme similarly states that the aim of the E-Bike Scheme, amongst others, is to reduce pollution in cities and promote environmentally friendly transport solutions.
While the Karnataka E-Bike Scheme is a significant improvement, it excludes a bigger range of vehicles that may be employed as bike taxis and provide for easier transportation in terms of last mile connectivity, particularly in rural areas.
The idea that non-electric bike taxi business is not permitted in Karnataka persists in the absence of clear information on whether non-electric two-wheelers can operate as a bike taxi in that state. The lack of clarity led to claims that Uber and Ola’s bike taxi services were illegal when they first launched in Bangalore in 2016 and again in 2018 when the Transport Department asserted that such service providers lacked the necessary permits or licences to offer bike taxi services. Authorities also seized vehicles being used as bike taxis.
A representative for Rapido, a business that offers bike taxi services in Karnataka, welcomed the E-Bike Scheme while also mentioning that they will be speaking with the government of Karnataka about allowing comparable usage of non-electronic bike taxis. Therefore, it is urgent to reconsider the rules governing the services offered by non-electric bike taxis. The advantages of bike taxi service providers like Uber, Rapido, Ola, and Baxi can help India’s first- and last-mile connectivity issues in a big way.
Conclusion
There is no question that a nation the size and population of India needs a variety of transportation options, and bike taxis might be the solution to the country’s issues with last-mile connection and escalating levels of traffic congestion. Given that the Central Government has also supported the use of bike taxis, it is essential that states pass the required legislation to regulate their operation, striking a balance between user convenience and safety. Hence it is essential that the motor taxis will be required. It is required that the convinence will be done to the passengers.
REFERENCES
https://www.axfait.com/post/bike-taxis-the-problem-that-must-be-solved
Written by Harshit Jain
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