Centre proposes legal framework to enable running of “bike taxis”

The Union government has proposed amendments in the Motor Vehicles Act, to allow use of motorcycles as “contract carriers,” which, if approved, will create a legal framework for bike taxis to operate in India.

Currently, bike taxis are operating through aggregators like Rapido, Ola and Uber, but because the Act does not include ‘motorcycle’ in the list of eligible vehicles to act as contract carriage, many states have banned them. Opposition to the bike taxis has come from three-wheelers and taxi unions as it puts them at a disadvantage due to the former’s lower costs.