Why Karnataka's electric bike taxi policy failed to take off

In December 2022, the Karnataka transport department issued its first e-bike taxi licence to two-wheeler rental company Bounce, but it is yet to roll out its services

Karnataka became the first state in the country to roll out an electric bike taxi policy in July 2021. However, the policy seems to have failed, as even two years down the line, not a single operator has begun offering e-bike taxi services in the state capital Bengaluru.

The bike taxi policy was aimed primarily at enhancing first- and last-mile connectivity, particularly from metro, bus and railway stations, and creating employment opportunities. It was also expected to put an end to the hassle of bargaining with autorickshaw drivers who either refuse distance trips or demand exorbitant fares.

In December 2022, the Karnataka transport department issued its first e-bike taxi licence to two-wheeler rental company Bounce, but it is yet to roll out its services and has instead shifted its focus to producing electric scooters. Bounce was unavailable for comment.

Currently, Rapido and Uber are operating non-electric bike taxis in Bengaluru. Several users, including women, rely on these services. With these operators offering services without any permission from the transport department, the safety of users also remains a cause of concern.

Karnataka e-bike taxi scheme

Licence applied for but transport dept yet to issue

Another Bengaluru-based mobility startup, MetroRide, sought an e-bike taxi licence from the transport department last year but has not received it yet.

Girish Nagpal, CEO and founder of MetroRide, told Moneycontrol: "Last year, we applied for a bike taxi licence at Jayanagar RTO (regional transport office). However, every time we went there, they used to ask for additional documents. We finally submitted all the documents and the application in February 2023. It took us three months to complete the application, and then they said they would get back to us, followed by the requirement to pay the fees. It's been six months, and we have visited the transport department offices multiple times, but they have not responded so far."

"Karnataka is the first state to come up with a clear policy for bike taxis, but there is still so much chaos at the execution level. We want to operate bike taxis legally, but we are not receiving any support, and the policy remains on paper. We bought the initial set of vehicles and showed the registration certificates of the vehicles, workshops, and service agreements to the officials. However, they are yet to issue a licence to us," Nagpal said.

He said Karnataka’s e-bike taxi policy is well-drafted, but its implementation is poor. “We have already partnered with OEMs (original equipment manufacturers) who are ready to supply high-speed electric scooters for the purpose. Investors are also ready. Once we get the licence, we will commence services at five metro stations and expand across the city. Bike taxis have a lot of potential as it is easier to pick up passengers, even from congested localities, unlike other transport modes," Nagpal said.

At present, MetroRide operates electric shared autorickshaws at select metro stations in Bengaluru. "We will hire gig workers and provide them with electric scooters for bike taxi services. Also, those who own commercial electric two-wheelers can join our platform. We are also planning to launch electric bike taxi services in Delhi and Hyderabad," said Nagpal.

"We also have plans to start with female bike taxi drivers, allowing female passengers to choose to ride exclusively with them" he added.

Rapido application shot down 

Bike taxi aggregator Rapido also applied for an a bike taxi licence, but its application was rejected by the transport department for operating petrol-run two-wheelers.

"A case is pending before the Karnataka High Court so we are not able to take any action against illegal petrol-run bike taxi operators including Rapido," said a transport department official.

"The usage of electric bike taxis is still in its nascent stage, and cannot by themselves support the transport ecosystem of the country owing to limitations such as high costs and lack of charging points," a Rapido spokesperson told Moneycontrol.

Rapido bike taxi

"The government needs to focus on creating an ecosystem that prioritises the safety and reliability of bike taxis and ensures their seamless integration with the broader transportation network. It will not only contribute to the long-term sustainability of urban mobility solutions but also propel the growth of India’s gig economy which is already on the rise," said a Rapido spokesperson.

Karnataka transport commissioner, Yogesh AM, who assumed office in June 2023, has said that he will look into the issue.

However, a senior transport department official said that while the State Transport Authority (STA) will decide on this, there are hurdles. "There is stiff opposition against bike taxis by autorickshaw unions. We will allow only electric bike taxis in the city," the official said.

The Rapido spokesperson said: "Bike taxis are an integral part of the country’s evolving mobility landscape. Currently, there are over 1 lakh rides taking place per day on the Rapido bike taxi platform in Bengaluru alone and, therefore, a policy framework…for regulating bike taxis must allow them to coexist with other transport service providers."

Auto drivers in Bengaluru are opposing bike taxis claiming they would affect their livelihoods. They have also called for action against private vehicle owners using white-board vehicles for commercial purposes. However, food delivery and e-commerce service providers also use white-board bikes. Autorickshaws fall under commercial vehicles so need to renew fitness certificate, permit, emission certificate, meter calibration, insurance, etc., periodically, said an autorickshaw driver.

Also read: Divided by unions, united against bike taxis; Bengaluru auto drivers to go off roads on March 20

Pawan Mulukutla, director (integrated transport), electric mobility & hydrogen at research organisation WRI India, said: "The e-bike taxi policy was bound to fail. In Bengaluru, there are around 75 lakh two-wheelers out of the 1.1 crore vehicles. The operators should have been permitted to utilise the existing assets (petrol-run two-wheelers) and gradually increase the number of battery-run two-wheelers in a phased manner, with an annual target. The quantity of electric bikes is insufficient in the market, and those who possess them are using them for private use rather than for commercial purposes."

Delhi takes its cue from Karnataka

Following Karnataka's lead, the Delhi government decided to allow only electric bike taxis. In February 2023, the Delhi government banned conventional two-wheeler taxis, permitting only electric two-wheelers to offer this service. According to the 'Draft Delhi Motor Vehicle Aggregator and Delivery Service Provider Scheme, 2023,' all bike taxis in Delhi must be electric.

Following this, Uber wrote in a blog post in February 2023: "As the Delhi government contemplates a regulatory framework that will likely allow only electric vehicles (EVs) to function as bike taxis, the time is right for deeper industry dialogue… Steep and infeasible EV mandates risk finishing off the sector as we know it. The impact of such a decision on the livelihoods and mobility needs of millions of Delhiites is clear. Transition after all is possible only if the businesses are still running."

"We reaffirm our commitment to 100 percent rides taking place in zero-emission vehicles, on public transit, or with micro-mobility by 2040 — including in India… Hundreds of thousands of people in Delhi use two-wheelers across ridesharing platforms, accounting for an estimated 20 lakh trips every month. In 2022, over 19 lakh trips took place to and from metro stations in NCR (National Capital Region) on Uber Moto (its bike taxi service), underscoring the need-gap bike taxis fill in solving for the last mile commute… Besides being affordable, quick, and time-saving for riders, two-wheeler mobility products support the livelihood of over 1 lakh drivers in Delhi who use their bikes to provide mobility and make an earning," the Uber post added.