Delhi’s transport department denied aggregators like Rapido, Ola and Uber from working bike taxis in Delhi, the national capital of India. In a significant knock to ride platforms Ola, Rapido and Uber, the Delhi Transport Department on February 20 published a public announcement to stop functioning the bike taxi services instantly.
The transport department announced that if any aggregators disobeyed the order, they would be responsible for a penalty of INR 1 Lakh. The department also announced if these aggregators disobey, the first violation may lead to a penalty of Rs 5,000, while in a second offence, they could suffer a Rs 10,000 fine with up to one-year imprisonment, and that’s not enough; the driver also forfeits their licence for over three months for this affairs.
According to the announcement, some app-based companies represent themselves as aggregators in breach of the 1988 act. This act is punishable with a fine of Rs 1 lakh. Before this month, the Supreme Court rejected granting relief to the bike taxi aggregator Rapido against the Maharashtra government’s denial to endow a licence.
In the announcement, it was brought to information that two-wheelers (non-transport) private registration numbers are used to take passengers on hire, which is a virtuously commercial process, and a breach of the Motor Vehicle Act, 1988, according to the transportation department.
Rapido and other mobility firms faced multiple administrative challenges in the last few years. According to The Karnataka government, auto services delivered by Uber, Rapido and Ola were illegal.
The government recorded that only some app-based companies portraying themselves as aggregators are breaking the act. Next the charge, aggregators would face a penalty of INR 1 Lakh if any company’s taxi bike was found working in Delhi.
Bike taxis are one of the most popular transportation mediums in Delhi due to lower costs, effortless manoeuvrability and the ability for last-mile connectivity. Nonetheless, department officers mentioned by Indian Express mentioned that the transport department considers the benefits of a safety opinion.
They mentioned that amendments to the Motor Vehicles Act in 2019 made it apparent that aggregators only operate with a proper licence. A bar of Chief Justice D Y Chandrachud and t J B Pardiwala and Justices P S Narasimha reported that Pune’s Regional Transport Office denied its plea for approval on December 21.
The bench also said (Roppen Transportation Services Private Limited )Rapido could challenge the state governments for the January 19 notification, which restricted the use of “non-transport vehicle” from automobile pooling in the Bombay High Court. It expressed that the validity of the RTO’s December charge would include the subsequent more comprehensive decision of the state governance.
The Delhi bike taxi ban arrives after numerous states have blocked app-based aggregators from functioning vehicles other than cars as taxis.
Last year, Karnataka prohibited these aggregators from working auto-rickshaws as taxis, and now Maharashtra refused to grant Rapido aggregator approval earlier this year.
Moreover, these firms faced backlash from car drivers. Lately, more than 2,500 Uber and Ola drivers have orchestrated protests in Hyderabad for the problems they are facing related to fares and trip fees.
In Assam, thousands of cab drivers ban Uber and Ola, claiming low-grade treatment by these well-known companies. The Taxi unions of “All Assam Cab Mazdoor Sangha” and “All Guwahati Bike and Taxi Union” claimed they face harassment because the bike taxi and cab aggregators enormously increased their trip charges.