New Delhi’s city officials have announced their plan to begin impounding bike taxis from ride-hailing companies, including U.S.-based Uber and India’s Ola, following a court ruling that upheld a ban on these services. The decision marks a significant setback for these companies, particularly for Uber, which had legally disputed the ban, claiming it adversely impacts its drivers’ livelihoods.
India’s Supreme Court sided with the city government’s position on Monday, thereby supporting the restriction on bike taxis. The government has maintained that these services contravene city laws, which mandate that a license is necessary to offer such facilities.
“We will issue an advisory to companies asking them to respect the court order. If they fail to do that, we will start impounding vehicles,” stated Ashish Kundra, principal secretary and commissioner for transport in the Delhi government. His message to these companies is clear: prioritize passenger safety over profit pursuit.
The companies “have gone beyond the regulatory framework and are clearly on the wrong side of the law,” Kundra added, underscoring the government’s stance on the issue.
In response to the city government’s latest announcement, neither Uber nor Softbank-backed Ola, the leading providers of bike taxis in the capital, have yet made a statement. Despite the court order, both companies were still offering bike taxi services on their apps as of Tuesday.
Uber reported over 1.9 million trips via its bike taxi service, Uber Moto, to and from metro rail stations in Delhi in 2022, a clear indicator of the potential market size that is now under threat due to the ban.
This report is based on reuters.com
