Ola, Uber, and Rapido Banned from Bike Taxi Service in this City - Find Out Why!

The Delhi government has issued a circular warning strict action against individuals carrying passengers on bikes, imposing a fine of INR 5,000 for the first offence and INR 10,000 for the second offence under the Motor Vehicle Act 1988. If the fine is not paid, there could be a jail term of up to one year, and the bike would also be seized. 

The Kejriwal government had previously warned bike taxi service providers Ola, Uber and Rapido for operating in the city without permission, with a penalty of up to INR 1 lakh on the aggregator and a potential suspension of the driver's license for three months.

 This issue of bike taxi services without permission has caused tension between state governments and service providers in various states, with Maharashtra banning Rapido for violating rules, and the Supreme Court recently refusing to provide any relief to the company. 

With the Delhi government's ban on bike taxi services, other states may follow suit, and the issue could become more contentious. The Motor Vehicles Act was amended in 2019, and no aggregator can work without a valid license.