Ola, Uber get a jolt as Supreme Court bans bike-taxis in Delhi

The Supreme Court today gave a jolt to cab aggregator companies like Ola, Uber, and Rapido as it stayed an interim order of the Delhi High Court, which had allowed the bike service to continue after the Delhi government banned it in February. Staying the High Court's interim order, the Apex Court said today (June 12) that the bike taxi would not run in Delhi at present.

The Supreme Court has also directed the Delhi High Court to expeditiously hear the matter.

The Apex Court, however, has allowed parties to file petitions seeking an early hearing in the Delhi High Court.

Earlier, taking a stay on the Delhi government's decision, the Delhi High Court had allowed the bike service to the cab aggregator companies till the policy came out.

In February 2023, the Delhi government banned the bike service, citing that it was a violation of the Motor Vehicle Act, 1988, which prohibits using two-wheelers for commercial purposes. 

During the hearing in the Supreme Court today (June 12), Uber's lawyer said that since 2019, two-wheelers have been used for bike service in many states, and there was no restriction under the Motor Vehicle Act.

Uber's lawyer also said that according to a notification from the central government, the two-wheeler could be used for commercial purposes.

The court asked whether insurance is given if the vehicle collides with someone or an accident happens.

Uber's lawyer said that Uber provides third-party insurance. The lawyer further said that there are more than 35 thousand drivers, and their livelihood depends on it.

The lawyer further said that the Delhi government did not make any policy for 4 years, and the company should have been given relief till the Delhi government was allowed to make a policy.

The lawyer said that the Delhi HC directed in its decision that the Delhi government was in the process of drafting the policy; a total of 35 thousand drivers were associated with it; it is the cheapest mode of transport; at present, there is no policy in the state; and there is no central government notification of allowing commercial use of two-wheelers.
 
Delhi government's lawyer opposed Ola's plea, and said that it was making a policy regarding this.

The Delhi government said that until they got the licence, they couldn't continue the bike service, and as soon as the policy was made, they would be given the licence immediately.

It further said that the policy would be ready by July 31.

The Supreme Court asked the companies that you can get the licence of the aggregator, but can you allow non-transport vehicles to run?