bike taxi: No more e-bike taxis in Bengaluru as Karnataka withdraws policy citing its misuse

Transport department has withdrawn the Karnataka Electric Bike Taxi Scheme, notified on July 14, 2021. ET had on February 9 reported the government planned to end the bike taxi scheme in the state.

The regulation had sought to address urban mobility issues, including first and last mile connectivity problems faced by citizens. The scheme had been open to license holders to register the EV as a motorcycle in the transport category and use it as a public service vehicle.

Bengaluru-based Wicked Ride, the parent company of EV manufacturer Bounce, was the only firm that has applied for a license under the bike taxi scheme, officials told ET, not wishing to be identified. Bounce, a maker of electric two-wheelers, had plans to introduce bike taxi services with its own fleet, but went slow on that.

Karnataka, officials said, was the first state to have put out an exclusive policy to promote electric bike taxis, but the government did not find the response from platforms encouraging enough. EV startups had been making statements, but they were not translating into applications seeking a license, they added.

Delhi ended the ambiguity in October last year by coming up with a policy, allowing operation of bike taxis, but only with electric bikes.

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In Bengaluru, the Transport department, officials said, would take up an extensive study on the mobility sector and reintroduce the scheme with modifications. Transport Minister Ramalinga Reddy had told ET recently that the scheme had not had the desired effect. His department noticed people operating petrol bikes as taxis, defeating the very purpose of the scheme. In September, Ola cofounder Bhavish Aggarwal had announced that the ride-hailing company was re-starting Ola Bike, the company’s two-wheeler taxi service, in Bengaluru. Ola Electric, founded by him, makes electric scooters. “This time, all electric and our own S1 scooters! ₹25 for 5km, ₹50 for 10km. Lowest cost, very comfortable and great for the environment! Will scale across India over next few months,” Aggarwal had posted on X. The company, however, has not applied for a license, transport officials said.

Bengaluru has emerged as a tense market for bike taxis with auto drivers frequently clashing with them. The auto drivers blocked a few bike taxis during their strike last year and manhandled the riders. Videos of the incidents went viral later. A ban on bike taxis is one of the demands auto drivers have placed before the government.

A single-judge bench of the Karnataka High Court had on August 11, 2021, directed the transport authorities not to take any “coercive action” against Rapido’s bike taxi service. This allowed the company to offer its services even with non-EV bikes, in the absence of any regulations by the government. Rapido, a Bengaluru-based startup backed by Westbridge Capital and Nexus Venture Partners, has been offering app-based bike taxi services in Bengaluru since 2016.

A few states, including Andhra Pradesh, Bihar, and Goa, have allowed bike taxis. Goa, in fact, has had bike taxis, known locally as pilots, for decades.

Transport department has withdrawn the Karnataka Electric Bike Taxi Scheme, notified on July 14, 2021. ET had on February 9 reported the government planned to end the bike taxi scheme in the state.

The regulation had sought to address urban mobility issues, including first and last mile connectivity problems faced by citizens. The scheme had been open to license holders to register the EV as a motorcycle in the transport category and use it as a public service vehicle.

Bengaluru-based Wicked Ride, the parent company of EV manufacturer Bounce, was the only firm that has applied for a license under the bike taxi scheme, officials told ET, not wishing to be identified. Bounce, a maker of electric two-wheelers, had plans to introduce bike taxi services with its own fleet, but went slow on that.

Karnataka, officials said, was the first state to have put out an exclusive policy to promote electric bike taxis, but the government did not find the response from platforms encouraging enough. EV startups had been making statements, but they were not translating into applications seeking a license, they added.

Delhi ended the ambiguity in October last year by coming up with a policy, allowing operation of bike taxis, but only with electric bikes.

Discover the stories of your interest

In Bengaluru, the Transport department, officials said, would take up an extensive study on the mobility sector and reintroduce the scheme with modifications. Transport Minister Ramalinga Reddy had told ET recently that the scheme had not had the desired effect. His department noticed people operating petrol bikes as taxis, defeating the very purpose of the scheme. In September, Ola cofounder Bhavish Aggarwal had announced that the ride-hailing company was re-starting Ola Bike, the company’s two-wheeler taxi service, in Bengaluru. Ola Electric, founded by him, makes electric scooters. “This time, all electric and our own S1 scooters! ₹25 for 5km, ₹50 for 10km. Lowest cost, very comfortable and great for the environment! Will scale across India over next few months,” Aggarwal had posted on X. The company, however, has not applied for a license, transport officials said.

Bengaluru has emerged as a tense market for bike taxis with auto drivers frequently clashing with them. The auto drivers blocked a few bike taxis during their strike last year and manhandled the riders. Videos of the incidents went viral later. A ban on bike taxis is one of the demands auto drivers have placed before the government.

A single-judge bench of the Karnataka High Court had on August 11, 2021, directed the transport authorities not to take any “coercive action” against Rapido’s bike taxi service. This allowed the company to offer its services even with non-EV bikes, in the absence of any regulations by the government. Rapido, a Bengaluru-based startup backed by Westbridge Capital and Nexus Venture Partners, has been offering app-based bike taxi services in Bengaluru since 2016.

A few states, including Andhra Pradesh, Bihar, and Goa, have allowed bike taxis. Goa, in fact, has had bike taxis, known locally as pilots, for decades.