Rapido and Ola Bike are examples of bike taxis that provide affordable and speedy last-mile connectivity within India’s city transport systems.
Because these services could help mitigate traffic congestion while also providing low-cost transport options, the restrictions and bans that many Indian states implement on these services are perplexing. This forms a barrier to what could otherwise be a transformative opportunity for Indian cities. Safety concerns, undue pressure from unions of the existing transportation services, and inconsistent regulations worsen the situation. While India still has some work to do regarding the integration of bike taxis, evaluating other countries could provide valuable insight.
The Roots of Resistance
The obstacles to bike taxis in India are quite broad. In Karnataka, Maharashtra and Delhi, these services have already been banned or face stringent regulations. The Karnataka High Court recently directed aggregators such as Rapido, Ola and Uber to stop all bike taxi operations within six weeks in April 2025. This was on the basis that these companies are functioning under the mid-1980s Motor Vehicles Act, which has no provisions detailing twowheeler taxis.
While Delhi banned bike taxis in 2023 for not having the requisite commercial licenses, Maharashtra’s transport minister has labelled the mode of transport as “extremely unsafe”. These policies are usually an outcome of lobbying by auto rickshaw and taxi unions, who consider bike taxis an invasion on their territory and a blow to their income. I remember talking to an auto rickshaw driver in Bengaluru who used to vent out his frustrations about bike taxis, and how they drive with personal white number plates, claiming that they undercut his prices, which posed a challenge to sustaining his family.
Safety Concerns: Real or Overblown?
Lack of Safety is considered one of the main reasons for negative sentiment and concern surrounding bike taxis. A critic states that two-wheelers are especially dangerous when commercially utilised since they pose numerous threats and risks to the passengers. On one occasion, a close acquaintance told me how she nearly got into a collision while taking a bike taxi in Bengaluru due to her driver’s reckless lane-changing habit. Such incidents indeed escalate fears, especially among women passengers, and greatly heighten the worries of insurance coverage, given that private-plate cars might not be eligible for commercial claims.
With regard to this, bike taxis in Karnataka were considered ‘unsafe’, which led them to withdraw their Electric Bike Taxi Scheme in 2024. However, states like Telangana and Rajasthan demonstrate that with some requirements for commercial yellow plates, helmets, and driver training, risk can be greatly alleviated. In my opinion, these abrupt restrictions seem to reflect an aversion to change rather than a true safety concern.
Regulatory Chaos Stifles Growth
The multi-tier governance system in India is a dilemma in itself. The central government permitted the registering of motorbikes as transport vehicles in 2004, and a committee under the Ministry of Road Transport and Highways approved bike taxi permits in 2016, but states still have the final say. This has led to a patchwork of policies: while Goa, Telangana, and Rajasthan have adopted bike taxis, Karnataka and Tamil Nadu have outlawed them.
In India’s bike taxi industry, KPMG’s 2024 report pointed out the multifaceted policies created by different state governments’ lack of national vision, claiming, “The absence of a unified national policy framework damages prospects for the growth of an otherwise vibrant industry.” Wake up, India, bike taxis can create 5.4 million jobs by 2030 and solve the low-cost, low-emission transport problem the country desperately needs as its cities expand.
Global Lessons: Embracing Bike Taxis
Worldwide, bike taxis flourish in countries with similar urban problems. In Indonesia, Gojek and Grab practically own the streets of Jakarta with their subsidised two-wheeler taxi services and subsidised motorbike taxis. These modern bike taxi companies impose safety driving regulations, helmet use, and contracts of carriage with passengers, which guarantee safety to some degree while making these services available to the public.
In Nigeria, Gokada and Max.ng have revolutionised Lagos’ mobility by providing economic opportunities to thousands of young riders, all while unclogging traffic. These examples demonstrate the power of public-private collaboration; the existence of well-structured bike taxi regulations is beneficial for both commuters and economic growth. India could follow the same approach by simplifying the application process for permits while incorporating safety standards to formalise the sector.
A Path Forward for Bike Taxis
India’s refusal to accept bike taxis does not take into account the possible solutions to urban traffic congestion, job creation, and emission reduction. Concerns about safety and regulation are reasonable, but bans don’t provide an effective or thoughtful solution. Other states should follow the example of Indonesia and Nigeria, and Telangana’s more progressive approach to licensing these vehicles. They should develop policies that foster passenger and industry growth at the same time. India has the potential to transform urban mobility, making it smarter and more sustainable by harnessing the power of bike taxis once collaboration among regulators, unions, and aggregators takes place.
