Startup Originals Team
A big boost for Rapido, Uber, and Ola as government recognises bike taxis under national law:
The Indian government has finally cleared the decks for legal operation of bike taxi services across the country. In a major step for mobility and gig economy players, the Ministry of Road Transport and Highways (MoRTH) has officially recognised two-wheeler ride-hailing as a valid mode of public transport. This decision, long awaited by companies like Rapido, Ola, and Uber, brings clarity to an otherwise grey regulatory area.
Bike Taxis Now Officially Legal Under National Permit Rules:
The MoRTH’s notification has now included motorcycles under the ‘contract carriage’ category in the Central Motor Vehicles Rules. This means that just like auto-rickshaws and cabs, bikes can now be used for passenger transport services provided they get a commercial licence.
This move is crucial because until now, states were following their own policies regarding bike taxis. Some states like Goa and Haryana allowed it, while others like Delhi and Maharashtra had banned or stalled operations due to lack of legal clarity.
States Still Hold the Power, But the Path Is Now Clear:
While the central government’s approval is a big win, it is now up to individual state governments to adopt this framework and allow commercial bike taxi operations. The central amendment provides a uniform legal foundation, but implementation depends on states issuing their respective operational guidelines.
States can also fix local terms such as fare structures, permits, safety guidelines, and app-based aggregators’ responsibilities. This allows flexibility while maintaining national consistency in recognising bike taxis.
Rapido, Uber, Ola Among Key Beneficiaries:
This regulatory green light is great news for bike taxi startups like Rapido, which has been facing legal roadblocks in several states. Even ride-hailing giants like Uber and Ola, which offer two-wheeler services in select cities, are expected to scale up operations rapidly.
Bike taxis offer a cheaper, quicker, and more efficient option for short-distance travel, especially in traffic-heavy urban areas. They are also a lifeline for gig workers, helping lakhs of delivery agents and riders earn a stable income.
Push Towards Urban Mobility and Last-Mile Connectivity:
The move also aligns with the government’s broader push to enhance urban mobility and last-mile connectivity. With rising fuel prices and growing urban congestion, bike taxis present an affordable and sustainable alternative for daily commuters.
Experts say this will also reduce traffic load, improve public transport reach, and boost employment opportunities in tier-1 and tier-2 cities.
What Comes Next?
Now that the central government has amended the law, all eyes are on the state governments. Some states like Goa, Haryana, Karnataka, and West Bengal have already embraced bike taxis, while Delhi and Maharashtra have previously resisted them. With the Centre’s backing, pressure is likely to build on other states to follow suit.
The industry expects rapid policy alignments at the state level in the coming months, especially as app-based platforms push for large-scale rollouts.
