Rich sources, but bad approach, led the country’s biggest cab aggregators Ola and Uber to be cautious of the legal protocol to be followed going forward. Just a day after, both launched their Bike Taxi service in Bangalore, the Regional Transport Authority announced their functioning to be illegal and asked the citizens not to use the service.
The Transport Department said that neither of the companies had obtained a prior license or permit to operate this service. The Bike Taxis, per a statement by the department are illegal and hence covered under the Insurance Act. As per the Motor Vehicle Act, 1988, enforced in Karnataka, bikes are considered to be a private vehicle, and cannot be used for commercial purposes. On the day after the launch done, Bengaluru Traffic Police seized several such vehicles and. Narendra Holkar, Joint Commissioner (enforcement) of the Transport Department said that the action will be taken against the two companies.
Startups have been trying to find out the opportunity markets to cater the needs of the people, however, it is necessary to evaluate the legal approvals required to initiate a function. Non-adherence may be lead to the wastage of lot of time, money and energy.