Uber restarts bike taxi pilot with zero commission model

Would share customer usage data with govt to justify its utility to decongest roads

App-based taxi hailing service Uber has restarted its bike taxi pilot in country by pivoting it to a bike-pooling service where individuals will be able to share rides with other commuters. Uber says it would not earn money from the service during the pilot period and would share data on customer usage with the government to justify its utility to decongest roads.

Earlier this week, the company had shut the service in Bengaluru following a ban issued by the Karnataka government after deeming all bike taxi services illegal. The authorities blamed Uber for not complying with the ban, leading to around 80 motorcycles of rider partners being seized.

India's motor vehicle act does not have a provision for yellow boards on two wheelers, which is required to operate a taxi service. Uber has navigated the need to procure additional permits for aggregating bike taxis by operating it on a cost-only model. The company will not charge any commission until the period of the pilot lasts.

"To clarify, the uberMOTO service was launched to operate at cost only - effectively encouraging bikers to share the cost of a ride and eliminating the need for additional permits. Uber will also not charge any service fee for the period of this pilot," said the company in a blog post.

Aimed at helping decongest the city's roads and provide quick transportation options to customers, Uber and Ola had launched their bike taxi services in Bengaluru on March 4. Following the ban, the Karnataka government said that it would consider providing licenses to aggregators for bike taxis on a case-by-case basis, provided they have the right permits.

While rival services such as Ola and Ridingo have shut their services and are awaiting for further directions from the authorities, Uber is relaunching its service. The Karnataka government however still maintains that it will not allow Uber to play bikes on roads without first getting approval from the Road Transport Authority (RTA).

"Even if they're not making money or they are doing it for charity, they have to have a permit. We are in the process of framing laws for taxi aggregators in the state. If they approach the RTA and get the necessary permits, we can even think about framing similar laws around bike taxis," said Ramegowda, Karnataka's commissioner for transport and road safety told Business Standard.

In its blog post, Uber says that it will prepare a report with the key findings on the viability of bike taxis on Bengaluru's roads. The report would focus on how such a service would reduce congestion, cut travel time and help last mile connectivity, helping push the company's agenda for allowing bike taxi services in the state and country.