Violation of the order will be fined Rs 1 lakh for Bike Taxi.

According to a Delhi Transport Department public order, bike taxis in Delhi-NCR were in violation of the Motor Vehicle Act of 1988, which forbids the use of two-wheelers for business reasons. According to the most recent order, the Delhi Transport department has forbidden Rapido, Uber, and Ola from operating bike taxis in the nation’s capital, and any aggregators found in violation of the order will be fined Rs 1 lakh.

The bike taxi aggregators claim that each rider makes between Rs 300 and Rs 500 per day for short trips of between 3 and 8km. Customers in several Indian cities, notably office workers in the metros, have been supporting bike taxis because they are dissatisfied with the monopoly and level of service provided by taxi and rickshaw drivers who won’t accept customers for quick last-mile trips. This is made worse by the fact that highways in metro areas are often significantly more congested, especially during rush hour.

Goa, Andhra Pradesh, Haryana, Gujarat, Telangana, West Bengal, Punjab, Rajasthan, Bihar, and Madhya Pradesh are currently the states that still permit bike taxis.

By 2030, researchers predict that the Indian bike taxi sector would be worth $1,478 million. This ban is likely to have a significant effect on competitors like Rapido, which has raised over $300 million since its founding and is backed by well-known companies including WestBridge Capital, TVS Motor, Shell Ventures, and Nexus Ventures. The ride-hailing app from Rapido claims to deliver over a million rides everyday across more than 100 locations, with over 30 million users having used it to hail a ride.

If we see the present scenario, there is high demand of the bike taxi services in big cities. As per industry experts “bike-taxi solves urban mobility needs and is a relevant option for mobility as a service helping consumers negate the rising fuel costs with reduced charges. “Last-mile connection gets a major boost from easy maneuverability. Transportation has become more accessible and affordable thanks to paratransit services like bike taxis.