Recently, two State governments, Karnataka and Goa, arbitrarily applied the brakes on ride hailing, app-based taxi, bike and auto services, short-changing consumers in the process. Karnataka has apparently not made the necessary changes in its motor vehicles rules and guidelines that makes the registration of bike taxis possible; as a result, the April 2 High Court order that debarred them from plying in the absence of a regulatory framework, came into effect from June 16. In Goa, Ola and Uber have been stopped from operating in the State, following protests from taxi driver unions.

Now, the remaining cab and auto players are raking it in, with cheaper options being driven off the road. In Goa’s case, it appears that the government has succumbed to the influential local cab lobby. Cab operators are part of a large tourist ecosystem. But their livelihood concerns can be taken with a pinch of salt, as they charge tourists very stiff rates. Meanwhile, the aggregator experience in this country over a decade suggests that arbitrary pricing and, perhaps worse still, refusals to ply have come down. The cabbies’ apprehension that these aggregators charge high commissions from drivers is easily dealt with by changing the revenue model. Indeed, in Bengaluru, a commission based system has been replaced by the driver paying a flat daily fee to the aggregator. The social security code for gig workers also ensures certain benefits. So, the case for banning aggregators is unconvincing. Commuters benefit, while service providers too will not be worse off. Meanwhile, the local taxi services too manage with their niche clientele. However, the issue of commuter safety raised with respect to aggregator services needs to be addressed, with platforms picking up the tab.

Ride hailing services are predictable in their pricing, quick and efficient. Bike taxis (estimated to be running into lakhs in Bengaluru) have emerged as game-changers for being cheap and fast. However, at the heart of the bike taxi ban lies a ridiculous legal issue. Section 2 (28) of the Motor Vehicles Act can be interpreted to exclude motorcycles from the ambit of motor vehicles, as it refers to vehicles with four wheels and a certain engine capacity. In this circumstance, bikes cannot be registered under Section 2 (7) of the Act as a ‘contract carriage’. This has led to bike taxis coming under a cloud in a number of States, and not just Karnataka. A January 22, 2024 advisory by the Ministry of Road Transport and Highways sought to clear the air by saying that bikes indeed are motor vehicles and “States are advised to accept and process applications for contract carriage permits”. But States will have to make enabling provisions. If they have not done so, it perhaps leads to the question of whether lobbies are at work.

This sort of transport chaos compromises the efficiency of a city. A holistic transport policy that offers commuters a menu of options and privileges mass, sustainable transport is the need of the hour.

Published on June 20, 2025