Uber suspends bike taxi pilot after Karnataka govt cries foul

The state governments of Karnataka and Maharashtra have also moved to exert more control on app-based taxi aggregators.

Uber has suspended its bike-taxi pilot in India within 10 days of its launch after the Karnataka government said the app-based taxi-hailing company had not obtained the permission of local authorities to run the service in Bengaluru.

Ola, which began the pilot for its bike-taxi service in Bengaluru on the same day as Uber, too, had suspended its service within a day following a warning from the state.

Uber, however, failed to heed to the ban on bike-taxis, which led to 80-odd two-wheelers, operated by private individuals on its platform, being seized by the Bengaluru traffic police.

Uber and Ola follow an asset-light model where they connect individual taxi owners with riders for a fee.

“I met with somebody from Uber today (Monday). They said they will go before the Road Transport Authority (RTA) and submit an application. Until they receive the approval for operating bike-taxis in Karnataka, they said they would stop the service,” Ramegowda, Karnataka's commissioner for transport and road safety told Business Standard. 

The issue arose due to the lack of provision for two-wheeler taxis in the Motor Vehicles Act.

The Karnataka government has said that once approvals are procured by these aggregators, it will consider offering them licences on a case-by-case basis.

Uber did not respond to both email and phone queries seeking clarification on the issue.

Bike-taxis are a popular mode of transport in several Southeast Asian countries that face traffic congestion similar to Indian cities.

Uber had launched its first bike-taxi service in Bangkok a week ahead of introducing it in Bengaluru.

The initial hearing of the demands of players vying to operate bike-taxi services has already happened and the final notification from the RTA will come by the end of this month.

“I have told them that we will let them operate once they get a yellow board for the bikes or a badge for the rider,” said Ramegowda.

In the past, the Karnataka government had opposed Uber’s carpooling service, which allowed owners of private cars to charge a fee for ferrying passengers. The state had also suspended the licence of ZipGo, a shuttle bus service, on the grounds of operating without the right permits and competing with the Bangalore Metropolitan Transport Corporation.

The governments of Karnataka and Maharashtra have also moved to exert more control on app-based taxi aggregators.

Both states have passed drafts that could force Ola and Uber to install digital meters, stick to state-prescribed fares and do away with surge pricing.

UNTENABLE MODEL

Uber and Ola follow an asset-light model where they connect individual taxi owners with riders for a fee

Ola, which began the pilot for its bike-taxi service in Bengaluru on the same day as Uber, too, had suspended its service within a day following a warning from the state

The issue arose due to the lack of provision for two-wheeler taxis in the Motor Vehicles Act

The Karnataka government has said that once approvals are procured by these aggregators, it will consider offering them licences on a case-by-case basis