Centre tells states to allow motorcycles to ply as bike taxis; Rapido calls it ‘pivotal moment’

S K Geeva, under secretary, Ministry of Road Transport and Highways, in an advisory dated January 22, stated that, “I am directed to say that it has been brought to the notice of this Ministry that certain States/ UTs are, while processing applications for grant of permit, taking a view that ‘motor cycle’ is not eligible to ply under contract carriage or operate as a transport vehicle.”

The advisory stated that based on the definition of contract carriage provided in Section 2(7) of the Motor Vehicles Act, 1988 (“the MV Act”), ‘motorcycles’ shall fall within the ambit of Section 2(7) of the Motor Vehicles Act 3.

“It may be noted that the above position is also evident from sub-section (3) of section 178 of the MV Act which imposes a fine up to fifty rupees on the holder of a contract carriage permit for a two-wheeled contract carriage or the driver thereof, for refusal to ply the same or to carry the passengers. Accordingly, all the States/ UTs are advised to accept and process applications for contract carriage permits for motorcycles in accordance with the provisions of the MV Act and the rules thereunder,” the advisory stated.

The ban on bike taxi apps has been a long-standing demand of autorickshaw drivers in Bengaluru. The autorickshaw drivers alleged that operating bike taxis with a white board is ‘illegal’ and is destroying the livelihoods of lakhs of auto drivers in the city.

The Federation of Private Transport Operators Association had demanded Transport Minister Ramalinga Reddy to ban bike taxi apps, as part of their 36 demands submitted to the transport department.

Describing the Centre’s intervention as a pivotal moment for the industry, a Rapido spokesperson said, “We commend the Centre’s proactive stance in clarifying the regulatory landscape for bike taxis. We find the recent advisory from the Centre to be incredibly encouraging, as it clarifies the legal standing of bike taxis opening up new avenues for transportation and income generation. Now, more than ever, we urge the state governments to support us by aligning their procedures and guidelines with this advisory, facilitating the issuance of contract carriage permits to motorcycles.”

Rapido called for support from the government to revolutionize transportation in India.

Mobility expert Abhishek Awasthi, who is a senior partner of AZB & Partners, said that the Centre has cleared the regulatory dilemma with the advisory. “It is clear from the advisory that two wheelers are covered under the definition Motor Vehicles. The state governments should follow the advisory and register and issue contract carriage permits to two wheelers.”