New Delhi city warns Uber, Ola on use of bike taxis
New Delhi city authorities have warned Uber and its rival Ola for allegedly violating local transport rules by providing two-wheeler bike taxis, a senior government official told Reuters on Tuesday (Feb 28).
The transport department of India’s capital on Feb 19, issued newspaper ads asking digital companies to “immediately stop” allowing personal bike taxis that offer commercial, ride-hailing services on their apps as they violated city rules.
As of Tuesday, bike taxis continue to be available for booking on Uber and Ola apps in New Delhi.
Delhi is a key market for ride-hailing firms. Uber says in 2022, more than 1.9 million trips took place to and from metro rail stations in Delhi on Uber Moto, its bike taxi service.
Ashish Kundra, principal secretary and commissioner for transport in Delhi government, last week sent warning notices for non-compliance to Uber and Ola, asking them why they should not be penalised. The companies were given a week to respond.
“There is clearly a violation of law ... For the next few days we will watch what they do and then consider next steps including all legal options which we are well within our rights to use,” Kundra said.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Uber, he added, has sought a meeting with Delhi officials to discuss the matter.
Uber and Softbank Group-backed Ola did not immediately respond to a Reuters request for a comment on Delhi city’s warning letters.
The Feb 19 newspaper ad said companies can face a penalty of up to 100,000 rupees (S$1,632) for non-compliance. For drivers of bike taxis, the penalties could be as high as 10,000 rupees and a jail term of up to one year.
The enforcement of rules for bike taxis by Delhi government follows similar moves by Maharashtra and Karnataka states.
Delhi official Kundra said while the use of personal vehicles as bike taxis was not allowed under city rules, it also poses a safety concern as they do not have the same checks as commercially-registered vehicles, such as police verification of drivers.
“The rider could be anyone and we have to be mindful of concerns around passenger safety, especially women,” Kundra said. “Companies cannot ride roughshod over law.” REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Macau casinos remain resilient in April as consumers seek fun
Japan may introduce tax breaks to spur repatriation into yen: Sankei
Asset owners can’t afford to sidestep sustainability
Japan should leave the yen bazooka at home
South Korea’s export growth picks up, supporting outlook
China says Hamas and Fatah express will for reconciliation