Delhi HC allows bike taxi apps Rapido, Ola, Uber to restore ops in state

The Delhi High Court has put a stay order on notice by Delhi Transport Department that banned bike taxi platforms, such as Rapido, Ola and Uber. The order would restore operations of these companies in the national capital.

The division bench of the HC also said that the department should not take any coercive actions against Rapido and Uber until formulation of policies, according to press statements shared by both companies.

In February, the department banned all bike taxi aggregators in Delhi with immediate effect till the introduction of policies, which would regulate two, three and four wheel aggregators. At the time of the ban, the department also emphasized that it’s close to finalizing policies but three months later the status has been the same and it’s yet to introduce aggregator’s policies.

“We welcome the Delhi high court's order, which declares that 'no coercive measures shall be taken against bike taxi operators and its riders by the concerned authorities in the Delhi NCT until the government notifies the necessary regulations to govern bike taxi operations…" said Rapido in a press statement.

Uber also welcomed the decision and said that the decision will restore the livelihoods of drivers as well as ease out last mile connectivity to users.

“We welcome the Hon’ble High Court’s order to give Uber protection from coercive action on bike taxis in Delhi. This will bring relief to drivers on our platform whose livelihood had been impacted by the ban as also to the hundreds and thousands of riders who choose to ride on Moto for affordability and last mile connectivity. We are committed to serving the city and being the platform of choice for riders and drivers alike,” said an Uber spokesperson.

The order brings a sigh of relief for bike taxi platforms as the Supreme Court declined to lift the ban from Rapido in February after the Maharashtra government prohibited the use of non-transport vehicles for ride pooling and aggregation.

Over the past two years, several state governments including Karnataka and Tamilnadu have been pounding bike taxi aggregators due to the absence of policies and lack of understanding of new and emerging businesses.