After protests by Bengaluru auto unions, Karnataka withdraws Electric Bike Taxi Scheme

Sources said opposition from auto rickshaw unions against bike taxis is the primary reason for the move.

Following protests by auto-rickshaw unions in Bengaluru, Karnataka government has withdrawn the Electric Bike Taxi Scheme, which was launched in 2021.

In July 2021, the then BJP-led state government introduced the Electric Bike Taxi Scheme in an attempt to improve first and last-mile connectivity from Metro, bus, and railway stations, as well as to create employment opportunities.

A notification issued by the state transport department on March 6 cited concerns about private app-based organisations using non-transport two-wheelers (white board vehicles) in violation of the Motor Vehicle Act.

The notification stated that there were instances where auto and taxi drivers engaged in heated disputes with bike taxi riders, leading to law and order issues. It also raises concerns about the unauthorised operations of bike taxis, particularly impacting women's safety. The implementation of the scheme has also affected transport department's tax collection and enforcement. According to a committee chaired by the BMRCL managing director on the bike taxi scheme suggests that the scheme has not given the desired results, it adds.

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

Sources said opposition from auto rickshaw unions against bike taxis is the primary reason for the move. Auto drivers’ unions have been opposing the Electric Bike Taxi Scheme for the past few months. “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,” a senior transport department official said.

In 2021, Karnataka became the first state to implement an electric bike taxi policy. However, auto drivers persisted in demanding a ban on bike taxis, leading to instances of blocking and intimidating bike taxi riders.

Also, read: Why Karnataka's electric bike taxi policy failed to take off

The Karnataka government granted a bike taxi license in 2022 to Wicked Ride, the parent company of Bounce, fixing fares at Rs 25 for 5 km and Rs 50 for 10 km.  While Bounce did not commence its e-bike taxi services, Ola started electric two-wheeler taxi services in Bengaluru without a licence. Other aggregators like Rapido and Uber have also been operating petrol-run bike taxis without any approval.  Another Bengaluru-based mobility startup, MetroRide, sought an e-bike taxi licence from the transport department in 2022 but hasn’t received it yet.

Also, read: Ola dangles Rs 70K monthly earnings for riders in push to expand e-bike taxi service

However, Karnataka government's decision is in contrast to a recent advisory from the Union Ministry of Road Transport and Highways (MoRTH) dated January 22, 2024, supports bike taxis. The advisory urges all states and union territories to accept and process applications for contract carriage permits for motorcycles under the provisions of the Motor Vehicles Act and its rules.

Also, read: Good news for Rapido, Ola, Uber as govt set to legalise bike taxis