Big blow to Rapido, Ola and Uber as Delhi govt bars bike services

Digital apps, engaging as an aggregator, will be charged a fine of up to Rs 1 lakh under Motor Vehicles Act

The Delhi Transport Department has asked mobility players such as Uber, Ola and Rapido to stop plying their bike taxi services. The Delhi Transport Department on February 20 issued a public notice and directed such platforms to immediately stop operations to avoid prosecution and penalty.

“It has been brought to notice that two-wheelers having non-transport (private) registration mark/numbers are being used to carry passengers on hire, which is a purely commercial operation and a violation of Motor Vehicles Act, 1988,” the transport department said in the notice.

The transport department said any violation will result in a fine of Rs 5,000 in the first instance. For the second or subsequent offence, there is imprisonment, which may extend to one year and attract a fine of up to Rs 10,000, besides impounding of the vehicle.

“In addition, the driving licence of the driver will be suspended for a minimum period of three years under the direction of the Hon’ble Supreme Court,” the notice said.

The notice also said some digital platforms (Rapido, Ola, Uber), facilitating such operations by offering booking through an app, thereby engaging themselves as an aggregator in contravention of the provision of Section 93. They will be charged a fine of up to Rs 1 lakh under the Motor Vehicles Act, 1988.

Uber and Ola declined to comment on the notice issued by the transport department.

Earlier this month, the Supreme Court refused to grant relief to bike taxi aggregator Rapido against the Maharashtra government’s refusal to grant licence to it.

Rapido, Ola and Uber have stopped bike taxi operations in Maharashtra as well due to legal tussles.

In December 2022, the Karnataka state transport authorities refused to renew licences of Uber and Ola as they had not complied with rules that included installation of GPS and panic buttons in the cabs.

Uber’s operating licence to ply cabs under the Karnataka On-Demand Transportation Technology Aggregators Rule, 2016, expired in December 2021, according to sources. Ola’s licence expired in June 2021. Since then, it has reapplied for a licence, but its application is pending with the state transport department.

In October 2022, the Karnataka High Court asked the state government to reach an understanding with Ola and Uber on the fare to be charged for auto-rickshaw services through their apps.

Ola and Uber moved court challenging an order issued by the state transport department effectively banning auto-rickshaw rides through their apps following complaints of overcharging.

RIDE CANCELLED

• Delhi transport department said violation of notice by drivers will result in a Rs 5,000 fine for the first offence
• For the second or subsequent offence, there is imprisonment which may extend to one year and attract a fine of up to Rs 10,000
• In addition, the licence of the driver will be suspended for a minimum period of three years
• Earlier this month, the Supreme Court refused to grant relief to bike taxi aggregator Rapido against the Maharashtra government's refusal to grant licence to it
• In December 2022, the Karnataka state transport authority refused to renew licences of Uber and Ola