Relief For Rapido, Ola And Uber As Delhi HC Stays Government Order Banning Bike Taxis

In a major relief for app-based cab aggregators, including Ola, Uber and Rapido, the Delhi High Court has stayed a government notice banning bike taxi services in the national capital.

A division bench comprising Justices Suresh Kumar Kait and Neena Bansal Krishna also directed the Transport Department not to take any coercive steps against Rapido and others till such time policy is framed.

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What the High Court said

"The Hon'ble High Court has ordered that no coercive steps shall be taken by the concerned authorities in the Delhi NCT against Rapido bike taxi and its riders until requisite regulation to regulate operation of bike taxis is notified by the government," said Abhishek Awasthi, who represented Rapido told The Economic Times.

"This is a very welcome decision for Rapido and its captains, and will prevent undue hardships that the captains currently face due to the challans issued by the transport department," he added.

Reacting to the HC order, an Uber spokesperson said, ¡°We welcome the Hon¡¯ble High Court¡¯s order to give Uber protection from coercive action on bike taxis in Delhi. This will bring relief to drivers on our platform whose livelihood had been impacted by the ban as also to the hundreds and thousands of riders who choose to ride on Moto for affordability and last-mile connectivity.¡±

Delhi bike taxi ban

In February, the Delhi government had banned the likes of Ola, Uber and Rapido from plying bike taxis in the national capital.

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Terming their services a violation of Motor Vehicle Act, 1988, the Delhi government had warned a punishment for the first offence up to Rs. 5000, and for a second or subsequent offence with imprisonment which may extend to one year with a fine up to Rs. 10,000 beside impounding of the vehicle.

Motor Vehicle Aggregator Scheme 2023

However, earlier this month, the Delhi government had announced the Motor Vehicle Aggregator Scheme 2023 aimed at regulating cab aggregators and delivery service providers.

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Commenting on the draft, Delhi Chief Minister Arvind Kejriwal explained that by transitioning to electric vehicles and promoting electric bike taxis, the government will be able to reduce pollution levels in Delhi and create new opportunities for employment and economic growth.

The Motor Vehicle Aggregator Scheme 2023 will be applicable to any person or entity that operates, on-boards or manages a fleet of motor vehicles through digital or electronic means or any other means to ferry passengers or connect a driver offering to deliver or pick up a product, courier, package or parcel to connect with a seller, e-commerce entity or consignor.

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According to the Delhi government, the scheme aims to ensure passenger safety during trips and cab aggregators' service quality while promoting the transition to electric vehicles. It will make it mandatory for aggregators to install a panic button and integration with 112 (Delhi Police) for emergencies.

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