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Government Advisory Signals Green Light For Bike Taxi Legalisation

The Ministry of Road Transport and Highways (MoRTH) in India has given some guidance about whether bike taxis are legal or not. They’ve stated that according to Section 2(7) of the Motor Vehicles (MV) Act, 1988, motorcycles can be considered as contract carriages. This means that bike taxis could be seen as legal under certain conditions. Additionally, the advisory also aims to shield bike taxi riders from fines related to licensing problems.

Until now, bike taxis have been permitted in select states like Rajasthan, Goa, Uttar Pradesh, and Telangana, whereas they were banned in Delhi and Maharashtra. Now with this advisory notice, there will be a uniformity with regards to the legality of bike taxis and this could clear the way for more states, UTs to issue permits for bike taxis.

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Bike taxis have several benefits compared to the traditional cabs and auto-rickshaws. Firstly, they could assist in solving last-mile connectivity issues by racing areas that are not easily accessible for larger vehicles. In addition, they can zip through congested traffic more efficiently, thereby reducing overall travel time and easing traffic jams. Moreover, they offer a more affordable way to travel compared to other options, making them accessible to a wider range of commuters. Allowing bike taxis throughout the country will also contribute to multiple employment opportunities.

Presently, India offers three primary bike taxi services: Rapido, Uber Moto, and Ola Bikes, with the former currently holding about 60 per cent of the market share.