Bike-taxis might be a solution to our city mobility woes however typically face regulatory hurdles. Whereas the Centre has just lately clarified their legality, state-level considerations about licensing and regulation persist. What must be executed to make them extra viable? Mint explains:
Why may bike-taxis be important?
Bike-taxis supply a cheap mode of transportation, notably for decrease and middle-income teams. With fares of ₹8-10 per km, they compete effectively with conventional auto-rickshaws, catering to first- and last-mile connectivity wants. Their affordability and accessibility make them helpful for city mobility, particularly in congested areas the place different modes of transport could also be scarce. They’ve to this point discovered most reputation in Tier II and III cities and cities. However a Localcircles survey mentioned 44% of Delhi residents and/or their household or workers had used a motorbike taxi at the very least as soon as in 2022-23.
What challenges do bike-taxis encounter?
Regardless of rising demand, bike- taxis have encountered resistance from some state governments and transport unions. Bans in Maharashtra, Delhi, Kerala and Tamil Nadu (some now resolved by means of new motorcar aggregator insurance policies, like in Delhi), spotlight regulatory inconsistencies primarily based on states’ differing interpretations of the Central Motor Car Act (CMVR) with respect to the legality of bike-taxis, in addition to considerations relating to improper licensing. These challenges hinder their widespread adoption, creating uncertainty for operators, riders and customers.
How do totally different states view bike-taxis?
Goa, Haryana, Gujarat and West Bengal have formulated aggregator insurance policies for bike-taxis. Maharashtra, Delhi, Tamil Nadu, Kerala and Karnataka had banned them. In Delhi and Karnataka, aggregator insurance policies now mandate a change to electrical bike-taxis. State-level insurance policies are important to handle regulatory gaps within the bike-taxi ecosystem.
What position does a clarification play?
The roads ministry has issued a clarification saying bikes fall throughout the definition of contract carriage below the Motor Autos Act, 1988. Whereas this offers authorized readability, the advisory says that “All states and UTs are suggested to simply accept and course of purposes for contract carriage permits for bikes.” Central authorities help must be supplemented with coordinated efforts on the state stage to streamline regulatory processes and foster business progress.
What is required to develop bike-taxis?
A complete framework addressing security requirements, licensing necessities, insurance coverage provisions and environmental considerations will likely be important. Resistance from taxi unions who fear about potential livelihood loss as a consequence of bike-taxis should be addressed. Considerations round security, particularly for ladies riders, should even be addressed by transport authorities in addition to by aggregators. In accordance with business estimates, Ola, Uber and Rapido collectively accomplished 300 million bike-taxi rides in 2022.
Supply: Live Mint