Karnataka Brings Curtains Down On E-Bike Taxi Scheme After Auto Unions Outcry

In the wake of protests by auto-rickshaw unions in Bengaluru, the Karnataka government has withdrawn the electric bike taxi scheme, citing its blatant misuse.

In July 2021, the then Karnataka government rolled out the e-bike scheme as an effort to improve first and last-mile connectivity from metro, bus and railway stations, as well as to create employment opportunities.

Under the policy, organisations or individuals can register their two-wheelers as taxis. Besides, companies operating such bike taxis will have to provide insurance coverage for the riders and the owner.

A notification issued on Wednesday (March 6) cites multiple reasons for withdrawing the scheme. 

The notification states that it has come to the knowledge of the state govt that by violating the provisions of the scheme non-transport bikes (white board) are being used as bike taxis.

It further says that there were incidents of auto and taxi drivers getting into bitter confrontations with bike taxi riders throwing up law and order situations. 

The notification also cited illegal operations of bike taxis causing women safety concerns. The scheme also had an impact on the collection of tax and enforcement activities of the department.

It is said that a committee chaired by the managing director of BMRCL in its report on the bike taxi scheme said that the initiative did not yield desired results.

“We will not be issuing any licences under the scheme. We will soon submit a report in the high court for the withdrawal of the scheme and also not to allow petrol-run bike taxis to operate either,” Moneycontrol reported, citing a senior transport department official.

Objections raised by auto-rickshaw unions in Bengaluru against bike taxis are said to be the primary reason for the move.

Reportedly, the only company that has applied for a license under the bike taxi scheme is the parent of EV manufacturer Bounce, Wicked Ride. Bounce which was earlier planning to introduce bike taxi services with its fleet, is now going slow on the decision.

In October last year, Delhi clarified its stance by introducing a policy that permitted the operation of bike taxis, but only those using electric bikes.

Ola cofounder, Bhavish Aggarwal announced the relaunch of Ola Bike, the company’s motorcycle taxi service, in Bengaluru last year. Aggarwal emphasised that the service would exclusively use electric scooters made by Ola Electric this time. However, the company has yet to apply for a license.

Bike taxis have always faced challenges in Bengaluru, with frequent clashes between auto drivers and bike taxi operators. Auto drivers protested last year, blocking some bike taxis and even assaulting the riders. 

These incidents gained attention after videos went viral around such clashes last year. One of the demands of auto drivers is a ban on bike taxis.

Previously, the Karnataka Electric Bike Taxi Scheme 2021 also effectively ended the standoff between bike taxi operators such as Rapido and Bounce, and the state, allowing them to operate. 

Before this policy, the Karnataka High Court ordered the government to clarify its stand on allowing motorcycle taxis after companies had filed a case in this regard.

In the past, the state police had imposed penalties on drivers and confiscated bikes in the absence of a clear-cut policy for bike taxis. 

However, a single judge ruling in Karnataka High Court in 2021 instructed transport authorities not to take punitive measures against Rapido’s bike taxi service, allowing them to continue operating even with non-electric bikes due to the absence of government regulations.

Rapido, a Bengaluru startup supported by Westbridge Capital and Nexus Venture Partners, has been offering app-based bike taxi services in the city since 2016.

Several states, such as Andhra Pradesh, Bihar, and Goa, have permitted bike taxis. Goa, in particular, has had bike taxis, locally known as pilots, for many years.