Logistics

Bike taxis can boost mobility in India, says study by Ola Mobility Institute

Our Bureau Bengaluru | Updated on March 17, 2020 Published on March 17, 2020

They have revenue potential of $4-5 billion, can generate 2 million livelihoods

 

Ola Mobility Institute (OMI) released a report on Tuesday that estimates the revenue potential of bike taxis at $4-5 billion, along with generating over 2 million livelihood opportunities.

Underscoring the importance of two-wheelers in India and the potential of bike taxis to stimulate economic and social development, the report, titled, The Power of Two Wheels - Bike Taxis: India’s new shared mobility frontier, suggests that the key to effectively governing bike taxis as a mobility category lies in providing coherent legal clarity, integration of public transit systems, allowing access to formal credit for driver entrepreneurs and creating a level playing field for all stakeholders.

“India has one of the largest numbers of two-wheelers plying on the roads in the world. Shared mobility and hyperlocal delivery are witnessing strong uptake and bikes have emerged as the preferred choice for both passenger and goods movement. The report comes at a critical time when India needs to create 55-60 lakh new jobs annually over the next decade. Bike taxis will be key in achieving this target, democratising access to mobility and building an inclusive mobility ecosystem” said Anand Shah, Head, Ola Mobility Institute, in a statement.

First mile-last mile solution

OMI, in its detailed study, has conducted an empirical analysis of bike taxi operations in Gurugram and Jaipur. The study found that bike taxis are an ideal first mile-last mile solution as 70-85 per cent of customers prefer to use bike taxis to travel distances less than 7 km. In Gurugram, it has been observed that one in three trips are to and from metro stations with the majority of trips happening during peak hours.

The report further quantifies the benefits of bike taxis in providing affordable and safe first and last mile connectivity, income augmentation and job creation. It provides a detailed explanation of how States and Union Territories in India stand to gain socially and economically by legitimising the operations of bike taxis.

Pointing out that the Centre has paved the way for States to formulate policies for bike taxi operations, the report says, currently, only a few States and Union Territories regulate this category. State governments can unlock the potential of bike taxis as an affordable, efficient, fast and safe mode of transportation to help India become a $5-trillion economy, it says.

Published on March 17, 2020
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