Uber, Ola bike taxis hit Karnataka roadblock

It added that it would initiate legal action against both firms for not taking permission before launching service

The Karnataka government on Saturday said that a bike taxi service that both Ola and Uber have piloted in Bengaluru was illegal and that it would pursue legal action against both firms for not seeking permission first.

“The regional transport authority has not given any permits to Uber and Ola to operate bike taxis,” a note from the government said.

The government also said that people would not be able to claim insurance for injury or damage to vehicles in accidents involving such vehicles as such a category does not exist in the claims procedures.

“Any taxi has to be yellow board and two-wheelers cannot be registered under a yellow board, so the various stakeholders have to go before the Road Transport Authority (RTA), make an application, obtain permission and a licence to operate. If the RTA agrees and approves the applications for bike taxis, we will allow them,” Karnataka transport commissioner Ramegowda said.

Early this week, both app-based ride hailing companies Ola and Uber added motorcycles as a category on their platforms, which they are piloting in Bengaluru. Both companies hope “bike taxis” will appeal to customers looking to make short trips in the city that has become notorious for its chock-a-block traffic. Uber has set its base tariff to ferry passengers at Rs 15, while Ola will charge customers a minimum of Rs 30.

“We are very excited to pilot uberMOTO in Bengaluru — pairing our on-demand technology platform with motorbikes, the predominant mode of transport in India,” Amit Jain, president of Uber India, had said in a statement during the launch.

Bengaluru, home to a large number of technology companies, research institutions and start-ups, has the highest density of vehicles in the country — 5.6 million vehicles for a population of around 10 million. Of this, two-wheelers constitute 3.84 million or 69 per cent of the total vehicle population in the city.

India’s tech hub has also emerged as the testing ground for app-based aggregators to pilot new services and products before scaling it up nationally. Other states in the country look at Karnataka for guidance to frame policies to allow these services. Bike taxis are a growing segment of the app-based ride hailing market in India, with newer firms choosing not to enter the cab market given Ola and Uber’s dominance. Companies such as Hey Bob and Rapido already operate in the space and the entry of the two large players could send a few shivers down the competitors’ spine.