The Delhi transport department has barred bike taxi aggregators such as Uber, Ola and Rapido from operating in the national capital region. Violating the order would result in a fine of Rs 1 lakh, the transport department has warned.

In a public statement, the Delhi Transport Department cited the Motor Vehicle Act of 1988, which prohibits the use of two-wheelers for commercial purposes, stating that plying bike taxis in Delhi-NCR violated the act.

After the ban on bike taxis, the Delhi government has categorised the offences into three levels of severity. The first offence could result in a penalty of Rs 5,000, while a second offence could incur a fine of Rs 10,000 and imprisonment of up to one year, along with a three-month license suspension.

The government also pointed out that several app-based companies were claiming to be aggregators and violating the law. Under the new order, aggregators would face a fine of Rs 1 lakh if found operating in Delhi.

Interestingly, bike taxis are a preferred means of transportation in Delhi due to lower prices, easy maneuverability and last-mile connectivity. However, department officials quoted by Indian Express emphasised that the transport department must prioritise safety when considering such services.

In Delhi, after verification, the transport department issues passenger service vehicle badges to commercial drivers and the vehicles receive yellow number plates.

Delhi’s decision comes as the Supreme Court rejected bike taxi aggregator Rapido's plea against the Maharashtra government’s decision to refuse a license. The court held that the amendments made to the Motor Vehicles Act in 2019 clarified that aggregators could not operate without a valid licence.

The bike taxi ban in Delhi follows several states' decisions to prohibit app-based aggregators from using vehicles other than cars as taxis. Last year, Karnataka barred these aggregators from operating auto-rickshaws as taxis, and earlier this year, Maharashtra refused to grant Rapido an aggregator licence.