Does Karnataka’s Ban On E-bike Taxis Call For A Central Regulation On Cab Aggregators?

What’s the news: E-bike taxis are now banned in Karnataka as the state transport department decided in early March 2024 to rescind the Electric Bike Taxi Scheme 2021, as per the Financial Express. As per a notification accessed by the Express, the transport department said the scheme violated the Motor Vehicle Act, raised concerns of a “deteriorating law and order” and called it “unsafe for women.” What’s interesting is that while the Karnataka government appears to have taken a firm stand against e-bike taxis and allowed the plying of regular taxis, the Delhi government in 2023 took a complete opposite approach, pushing all cab aggregators to ply e-bike taxis instead. Aside from bringing in its fair share of chaos, the announcement also begs the consideration of whether India should work on a central law for bike taxis.

Scheme hindering department’s revenue collection: As per the notification cited in the Express report, the transport department said that the electric bike scheme made it difficult for the department “to collect revenue and efficiently run promotional activities.” It also talked about the illegal plying of non-transport two-wheeler vehicles by some private app-based organisations and the conflicts between bike taxi drivers and cab drivers. Lastly, the notification also cited a report by a committee constituted under the chairmanship of M Maheshwar Rao, Managing Director of Bangalore Metro Rail Corporation Limited (BMRCL), whose verdict was not in favour of the implementation of bike taxis in Karnataka.

Delhi urges aggregators to use electric vehicles: In complete contrast to Karnataka’s decision, the Delhi government on November 29, 2023 decided to lift its ban on bike-taxis only if the two wheelers are electric vehicles. Delhi Transport Minister Kailash Gahlot said this was done in a bid to ease the cloud of pollution in the city. In fact, the department seemed keen to convert all aggregator-owned vehicles into electric vehicles by 2030.

MediaNama’s take: Rather than banging policy-makers’ heads on creating such state-specific regulations, perhaps the governments should consider a single central regulation for the plying of two-wheeler taxis. The regulation/ policies/ guidelines around bike taxis in India seem as varied as the number of cab aggregator companies here. Aside from Karnataka and Delhi, Maharashtra is another state that has banned two-wheeler rides in the state since 2023. Some may argue that bike-taxi rules should change state-by-state but a ban on the very plying of bike taxis raises questions like: what happens in case of inter-state travel? If a person living near state borders books a two-wheeler ride and enters another state with different laws on bike taxis, does the passenger get off and book another ride? Will there be special laws for inter-state travel? And if yes, will those be uniform across India?

Another confusing aspect of this situation is whether the notification violates the Motor Vehicles Act of the Central Government. On February 16, 2024, ET Auto reported that the Union Ministry of Road Transport and Highways (MORTH) sent an advisory to states “clarifying” that vehicles with less than four-wheels but fitted with an engine, come within the ambit of the Act. However, the Act also allows some level of discretionary power to the state governments. As a result, we now see varied policies on bike taxis that end up hindering cab aggregator processes. A central law or provisions specific to two-wheeler taxis can help resolve this issue.

Bike-taxis opposed in other states: While the Karnataka notification referred to protests by state cab drivers against bike taxis, similar protests also persist in other regions like Telangana. Gig workers wrote a letter to the state department alleging that the plying of two-wheeler taxis is an “illegal business practice” under the Motor Vehicle Aggregator Guidelines 2020. It seems that even within the small community of cab aggregators, two-wheeler taxis have few friends and many foes.

Also Read:

• Telangana Gig Workers Demand Ban On Bike Taxis, Compliance With Motor Vehicles Guidelines
• Uber Pushes For Talks On Electric Vehicles In Delhi After Curbs On Bike Taxis
• Delhi Transport Department “Bans” Bike Taxis By Ola, Uber, Others: All You Need To Know
• No Relief For Rapido: Supreme Court Asks The Company To Move Bombay HC Again

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