EMERGENCE OF BIKE TAXI IN INDIA – OPPORTUNITY OR THREAT?

India is one of the fastest growing economies in the world. There has been rapidcitie increase in urban population in last three decades and the rate of urbanisation has further increased. Public transport was not able to keep pace with the increase in demand, which led to an increase in private transport in the last two decades. As per Vahan digital register, there are around 195.6 million registered digitised vehicles in India as of 31 July 2016. However, around 75% of the registered vehicles are motorcycle / two-wheelers in India. This clearly shows that the demand of mobility is very high. 

No. of two-wheeler in India (Per 1,000 Inhabitants)

www.bikesindia.org
 

Travel to Work – Indian Census 2011

According to Indian Census 2011, 25.5 million (13% of total trips) people use two-wheelers to reach their workplace daily. If we extrapolate the number for 2015 based on vehicle registration, then it is estimated that 38 million trips are being performed by two-wheelers to reach to workplace on daily basis. It is important to note that above numbers does not include personalised trips. (Total numbers of Trips – 200.4 million per day). The numbers of two-wheelers is high in big metropolitan cities, mainly due to insufficient public transport and higher income level. 

Bike Taxi – An alternative to growth of two-wheelers

Till 2015, Goa was the only state in India which allowed bike as public service vehicle. Haryana joined the league by introducing bike taxi scheme for individuals and corporates. Under the scheme, individuals can register two-wheelers as commercial vehicle and can work with corporate to accept bookings. The service has become quite popular and serving first and last mile connectivity. The regulation allowed the startup to enter into this area and created a new category in India.

Source: www.bhp-temp.com

Mizoram was the third state in India to accept bike taxi as a mode of transport. In June 2016, Government of Mizoram has issued the guidelines of bike taxis. To begin with, 200-250 motorcycles will operate on the roads from July. Passengers will be charged INR 10 for the 5 kms and INR 5 for every subsequent km, as per the government fare structure.

West Bengal has become the next state to legalise bike taxi. The government has issued a draft notification legalising bike-taxis in the satellite township, New Town, near Kolkata. It is expected that transport authorities will come out with the final notification by September 2016. Under the draft notification, the authority will issue area-based Letter of Intent to operator owing a fleet of 15 bikes. The operator shall maintain a daily log for each of these motorcycles used for commercial purposes and submitted to the police.

Some of the operators are operating in other cities like Bangalore and Mumbai, which still do not allow bike taxis in a legal form.  However, it is expected that other states will issue similar regulations to legalize bike taxis

Impact of Bike Taxi

Most of the cities are afraid that bike taxis are not safe for commuters. Furthermore, the authorities are apprehensive that it is not a safe mode of transport for women. However, it is important to highlight that bike taxis have emerged as an alternative transport option in South East Asian countries like Indonesia, Thailand etc.

The average running cost of motorcycle is just INR 4-5 per km (US$ 0.10) and has a life span of 15 years. If the company launches electric scooters in future then the cost will further decrease. This will make the service affordable to masses. In certain case, it will be cheaper or equal to public transport system. Furthermore, the average trip length is less than 10 km in India and makes it easier for the commuters to ride motorcycle.

Bike Taxi Companies in India

Company Name

Cities in Operation

Numbers of Bikes

Funding

02

(Gurgaon / Bangalore)

--

--

01

(Bangalore)

--

--

02

(Gurgaon / Noida)

500

US$1.5 million

01

(Gurgaon)

100

Undisclosed

02

(Gurgaon / Noida)

150

US$ 0.5 million

01

(Gurgaon)

25

--

01

(Bangalore)

--

--

01

(Mumbai)

100

--

01

(Bangalore)

50

--

01

(Bangalore)

--

--

01

(Bangalore)

--

--

01

(Delhi)

--

--

01

(Kolkata)

200

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