Maharashtra's New Traffic Rules: Bike Taxis From Rapido, Ola, and Uber Get Green Light To Reduce Traffic

The Eknath Shinde-led Maharashtra government approves the operation of bike taxis in urban areas, including Mumbai and other cities, as per the report shared by the news agency, Hindustan Times. This decision is expected to benefit app-based companies like Rapido, Ola, and Uber. Maharashtra becomes the 13th state to permit bike taxis, joining Telangana, Andhra Pradesh, West Bengal, Karnataka and others.

State Transport Commissioner Vivek Bhimankar announced that a government notification with further details would be issued soon. "It will be an app-based fleet service and will prove to be convenient for passengers," he said, noting that bike taxis could help reduce city traffic. According to state vehicle registration data, Mumbai has 2.8 million two-wheelers, including 600,000 scooters.

Bike Taxis Rules

According to the draft rules, app-based aggregators must have a fleet of at least 50 two-wheelers, with a registration fee of one lakh rupees. For fleets exceeding 10,000 vehicles, the fee will be five lakh rupees.

Bike taxis will operate within a 10 km radius in Mumbai and a five km radius in other cities. All bikes must be Global Positioning System (GPS)-enabled, and registration along with basic training for bike pilots will be mandatory for the aggregators.

Autorickshaw And Taxi Unions' Concerns

The approval for bike taxis is facing opposition from autorickshaws and taxi unions. Shashank Rao, president of the Autorickshaw Chalak-Malak Sanghatana Sanyukt Kruti Samiti, voiced several concerns. "It is not safe; there is no control on the operation; the credentials and character checks of the driver are not verified. Our resistance is not because we are afraid of our business, but because of these uncontrolled operations," he said.

Maharashtra Government's Concern

Chief Minister Shinde approved the decision following a meeting where the state transport department emphasized the importance of implementing the central government's bike taxi policy, which was introduced in 2022. While the central government approved bike taxis two years ago, the responsibility for framing rules and issuing licences was given to state governments.

An official from the transport department stated that a state policy on bike taxis would help regularise the sector and ensure passengers' safety. "Maharashtra has not yet finalised the aggregator policy and issued the notification, despite which services are being operated by the aggregators. In case of any accident or mishap, the aggregators at present take no responsibility, saying they are just technology partners of the bikers. Our policy will help to regularise them and ensure the safety of the passengers."

Bike Taxis' Status In India

The Ministry of Road Transport and Highways (MORTH) has issued a clarification regarding the legal status of bike taxis. According to the Motor Vehicles Act, of 1988, motorcycles fall within the definition of 'contract carriage.' A contract carriage is a vehicle that carries passengers for hire under a specific agreement.

In an advisory to states, MORTH noted that some states and union territories are incorrectly viewing motorcycles as ineligible to operate under contract carriage or as transport vehicles when processing permit applications.

The ministry clarified that, as per section 2(28) of the Motor Vehicles Act, vehicles with less than four wheels and an engine capacity exceeding 25cc are included within the definition of motor vehicles. Therefore, motorcycles are covered under Section 2(7) of the Act.

A contract carriage agreement involves renting an entire vehicle for a fixed price, based on either distance or time, with or without a specific route.

The advisory further advised all states and union territories to accept and process applications for contract carriage permits for motorcycles in accordance with the provisions of the Motor Vehicles Act.