Telangana Gig Workers’ Union Seeks Ban On Bike Taxi Services Of Rapido, Ola, Uber

In another trouble for ride-hailing startups Rapido, Ola, and Uber, the Telangana Gig And Platform Workers’ Union (TGPWU) has written to the state’s transport ministry seeking an immediate ban on bike taxi services offered by these platforms. 

In a letter to the state government, the TGPWU said that the ride-hailing businesses are operating an “illegal business” of providing bike taxi services when private licensed vehicles are not allowed to be used as taxis. This has led to hundreds of bikes being seized across states, which has come as a blow to the bike drivers and not to the companies, it said.

The ride-hailing platforms have earlier also faced multiple challenges in several states like Karnataka, Tamil Nadu and Kerala for providing bike taxi services. The services were also banned in some states for brief periods. 

The auto services of Ola, Uber, and Rapido auto services were also almost banned in Karnataka earlier this year. However, Karnataka High Court passed an interim order allowing the companies to continue their services.

Under the Motor Vehicles (MV) Act (Rule 50, 51 of MV Act, 1989), the registration letters and numbers for two-wheelers/Light Motor Vehicle cars are supposed to be in black letters on a white background, while they are supposed to be in black letters on a yellow background for commercial vehicles. However, the TGPWU noted that the bike taxis of the ride-hailing platforms are improperly using private vehicles for commercial purposes.

“All operations of private motorbikes operating as bike taxis should be stopped in Telangana immediately. There should also be an immediate cap implemented by the state government on attaching new vehicles for bike taxis and delivery in Telangana,” the TGPWU said in its letter. 

The union demanded that the bike taxi operations of Rapido, Ola and Uber should follow the MV Act pertaining to the registration requirements for commercial vehicles.

“The government should instruct Rapido, Ola, and Uber to bear the cost of the penalties levied on the bike taxi owners in Telangana,” the letter added. 

The TGPWU claimed that Karnataka, Chennai, and Maharashtra RTOs seized around 120 bikes in the last week of January this year, charging a fine of INR 10K-INR 15K to the owner of each seized vehicle operating for the above mentioned ride-hailing apps. 

“This brings forth two serious issues, first the RTOs are arresting and charging bike taxi drivers and not taking any action on the company itself,” said the union.

As per the TGPWU, this has also given rise to a second issue where auto rickshaw and cab/taxi drivers are getting fewer rides and suffering as bike taxis charge lower prices for their services given they do not pay road permits, taxes, and licence fees associated with operating commercial vehicles.

The demand of the union will add to the challenges of the ride-hailing platforms in the country. Despite this, India continues to be an attractive market for these platforms. As per a report by Allied Market Research, India’s bike taxi market will reach a size of $1,478 Mn by 2030 from $50.5 Mn in 2021, clocking a compound annual growth rate of 48.5% between 2022 and 2030.