If Motorcycles Can Operate As Taxis, Why Not Allow Their Aggregation? It Aids Last-Mile Connectivity: Uber India To Karnataka HC

In appeals by various bike taxi aggregators such as Uber India, Rapido and OLA against the single Judge order which upheld the state government's ban on plying of bike taxis in the state, Uber India today submitted before the Karnataka High Court that if motorcycles can legally operate as taxis, there is no justification for disallowing their aggregation. The company asserted before a bench of Acting Chief Justice V Kameswar Rao and Justice CM Joshi that aggregators play a key role in facilitating last-mile connectivity and convenience, which will also reduce the problem of traffic. Senior Advocate Srinivasa Raghavan, appearing for the aggregator, submitted before the Court that existing legal frameworks do permit the operation and aggregation of two-wheelers for commercial use and that the State's present stand is both inconsistent and detrimental to consumers' interest. He strongly contended that the State Government has no authority, either under the Motor Vehicles Act, 1988 or the Constitution, to impose a ban on bike taxis. In fact, it was his submission that its entitlement to license is not dependent on the State Government framing rules in this regard."I am entitled to my right to do business, even aggregation is business", he argued, Referring to Section 93 of the Motor Vehicles Act, which governs licensing of aggregators, he argued that the same is not silent on two-wheelers. It was further submitted that the now-repealed e-bike policy itself acknowledged the viability of electric bikes for public transportation and allowed their aggregation. Challenging the State's current position, it was argued that the e-bike scheme may have been repealed now; however, the state cannot argue now that motorcycles cannot be registered as transport vehicles and cannot be granted permits. He also argued that no policy decision was taken by the state government to ban bike taxis, and they had merely placed on a committee report to ban bike taxi, which he argued was not appropriate. “Sec 93 under MV Act prescribes a license for aggregator and rules have been framed and it included motor cabs and it included motorcycles and even the E-bike scheme contemplated it. State accepted that motorcycle can be used as transport vehicles and are to be used for last mile connectivity,” he submitted. He also pointed out that the State Transport Department's rejection of the 2019 expert committee report, which had recommended regulating bike taxis, is questionable. He contended that the withdrawal of the e-bike scheme does not invalidate the broader framework that enables motorcycles to be aggregated. At this juncture, the High Court posed a pointed query on whether a yellow board is mandatory for individual bikes. The Bench also asked if green board cars can be used for commercial purposes without a permit. Raghavan responded in the affirmative, adding: "Requirement of permit is exempted for all e-bike". It was his categorical stand that if motorcycles can be operated as taxis, there is no question of disallowing aggregation. He said: It will help in last mile connectivity and convenience. “To prevent aggregation is not in the interest of consumers, is my submission milords. A person buys ten bikes and engages riders, the aggregator helps in the process. If bike taxi is allowed, there is no logic of not allowing aggregators…it will help in last mile connectivity and convenience. It was also his stand that for last-mile connectivity, a person can use a bike taxi and leave their vehicle behind, which will help reduce traffic problems. The court will now hear the submissions of the state government on the next date of hearing.

If Motorcycles Can Operate As Taxis, Why Not Allow Their Aggregation? It Aids Last-Mile Connectivity: Uber India To Karnataka HC

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