The Supreme Court reinstated the ban on bike taxi services in Delhi, including Uber, Ola, and Rapido.
The Delhi government plans to impound vehicles violating the ban to prioritize passenger safety.
Here are the ban's reasons, the government's stance, and the impact on companies and riders.
Upholding Passenger Safety
According to a senior government official cited by news agency Reuters, the Delhi government claims that bike taxis, including those provided by ride-hailing companies, are in violation of local city laws that mandate a specific license for such services.
These laws aim to prioritise passenger safety by establishing regulatory frameworks.
To address this, the government intends to issue an advisory to the companies, urging compliance with the court order.
Non-compliance may result in vehicle impoundment, demonstrating the government's commitment to uphold the rule of law and ensure passenger well-being.
Ashish Kundra, the principal secretary, and commissioner for transport in the Delhi government, stated that they would issue an advisory to companies, urging them to comply with the court order. If the companies fail to do so, the government will begin impounding vehicles, Kundra was quoted saying.
Legal Consequences
Ride-hailing companies have previously received warnings and penalties under the Motor Vehicles Act, 1988, for using bikes for commercial purposes.
Violations of the Act can lead to fines of up to Rs 1 lakh, while bike taxi drivers may face penalties of Rs 10,000 and potential jail time of up to one year, according to the report.
The Delhi government is firm in its stance against the violation of motor vehicle laws.
The ban on bike taxis has raised concerns not only for the companies involved but also for the livelihoods of riders who depend on these services.
Despite the ban disrupting the current market, it is important to acknowledge that Uber Moto alone facilitated over 1.9 million trips to and from Delhi metro rail stations last year.
As a result, the bike taxi segment has become a substantial market for ride-hailing firms, underscoring the need for a meticulous and comprehensive approach to formulating the guidelines.