Supreme Court Revives Ban on Bike Taxis in Delhi

In a significant setback for ride-hailing giants Uber and Ola, the Supreme Court has revived the ban on bike taxis in Delhi. The court made this decision while hearing two separate petitions filed by the Aam Aadmi Party (AAP) government, which aimed to challenge the High Court's order from May 26.

The High Court order had essentially permitted bike-taxi aggregators such as Rapido and Uber to operate in the national capital, provided that the Delhi government refrained from taking any coercive action until a new policy was formulated. However, a vacation bench comprising Justices Aniruddha Bose and Rajesh Bindal stayed the High Court's order and granted the aggregators the liberty to seek an urgent hearing of their plea from the Delhi High Court.

During the hearing, the Delhi government counsel assured the bench that the final policy would be notified before the end of July. This implies that the bike-taxi aggregators will have to wait for the policy's implementation before they can resume operations in Delhi.

The Supreme Court's decision came in response to the AAP government's plea, which challenged the High Court's order that barred the government from taking any coercive action against the bike-taxi aggregators until the final policy was notified. Last week, the top court had also sought a response from the Central government regarding both of the Delhi government's pleas.

In May, the Delhi government approved the Motor Vehicle Aggregator Scheme 2023, aimed at regulating cab aggregators and delivery service providers in the national capital. The policy includes several noteworthy features, such as mandatory panic buttons in taxis, integration with the emergency number '112,' and a gradual transition to electric vehicles.

The Motor Vehicle Aggregator Scheme 2023 applies to individuals or entities that operate or manage a fleet of motor vehicles through digital or electronic means, connecting drivers offering transportation services or delivery services with passengers, sellers, e-commerce entities, or consignors.

With the Supreme Court reviving the ban on bike taxis, Uber, Ola, and other similar aggregators will have to await the final policy's implementation before they can resume their services in Delhi. The decision undoubtedly deals a significant blow to these companies, leaving them with no choice but to comply with the court's ruling and wait for the regulatory framework to be finalized.

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