Uber Warns India's Electric-only Bike Taxis Plan Could Devastate Ride-hailing Sector, Population

Uber has recently voiced concerns over the Delhi government's plans to only allow electric vehicles (EVs) to operate as bike taxis, citing the risk of the sector's eradication and the impact on millions of people's mobility needs in the city.

The Indian city is home to more than 15 million people, according to the latest government data.

Economic Times reports that the local government's plans are part of a new policy intended to regulate the vehicles used by ride-hailing companies such as Uber and Ola.

In a public notice, the India transportation department warned bike taxis against operating in Delhi and advised aggregators that violations could result in fines of up to Rs 1 lakh.

The policy is being finalized and will be implemented as soon as possible.

Uber Voice Out Concerns Over New Regulations

Uber believes such a move would jeopardize the city's livelihoods of more than 100,000 drivers.

Reuters reports that the ridesharing platform has set a 2040 goal for all of its rides, including those in India, to be in zero-emission vehicles, public transportation, or with micromobility. Uber plans to introduce 25,000 electric vehicles in India over the next three years.

The company has also voiced worries regarding the government's stance on two-wheeler bike taxis, which the company argues are essential to providing affordable mobility options to a more significant portion of the population.

Thousands Ride Two-wheeler Bike Taxis in Delhi

The company stated in a blog post that hundreds of thousands of people in Delhi use two-wheelers on ridesharing platforms, accounting for an estimated 20 lakh trips per month.

As stated by the company, two-wheeler mobility products support the livelihoods of over 1 lakh drivers in Delhi who use their bikes to provide transportation and earn a living. Some people use it as their sole source of income, while others use it to supplement their earnings from other jobs.

Uber Requests Dialogue with Government

Uber believes a fair EV transition requires industry parity. The company claims that ridesharing and delivery electrification mandates unfairly divide responsibility and hurt the entire industry.

Two-wheeler ridesharing apps should be treated equally with delivery and services, and Uber believes fleet conversion timelines should be the same across sectors.

Uber contends that the Delhi government's sustainability goal is similar to its own. Uber has requested a government-industry dialogue to find a shared electrification path.

Uber points out that the Delhi government's emphasis on EV transition can serve as a springboard for EV adoption, and the ridesharing sector can serve as a catalyst for that change.

In Other News

Tesla confirms that its previous home and central operations base will again serve as its Engineering headquarters, with a new location in California.

It will utilize a former Hewlett-Packard building to focus on the numerous innovations it intends to bring to the world; the new location was revealed at a recent event.

Stay posted here at Tech Times.