The bike taxi sector is emerging as a key part of urban mobility, offering relatively affordable last-mile connectivity amid patchy public transportation networks across the country. (Image generated using AI)State governments should explicitly permit online transport aggregators such as Uber, Ola and Rapido to onboard private motorcycles for usage as bike taxis, and rather than mandating a permanent commercial conversion, should recognise such vehicles through “lightweight permit models,” a recent research report has said.The report titled ‘Harmonising Bike Taxi Regulations in India,’ prepared by consumer-advocacy group CUTS International, also batted against state governments from enacting policies that require fleet electrification immediately, and instead called for a phased implementation approach.The bike taxi sector is emerging as a key part of urban mobility, offering relatively affordable last-mile connectivity amid patchy public transportation networks across the country. It is also creating livelihood opportunities for lakhs of gig workers. The sector could be a $1.46 billion market by 2030, and offer more than 5 million gig work opportunities.Also Read | After crackdown, U-turn: Maharashtra to legalise bike taxis from Aug 1, domicile must for driversHowever, a fragmented regulatory landscape has constrained its growth, with states adopting divergent policies despite the Centre’s Motor Vehicle Aggregator Guidelines, 2025 enabling them to permit bike taxis. A central friction point is whether private, ‘white number plate’ motorcycles should be allowed to carry out commercial activities, when groups such as auto rickshaw and cab drivers have to pay additional licence fees and other statutory dues to drive commercial vehicles.Electrification has been another major sore point. Though some states are allowing private motorcycles to be used as bike taxis, there is an increasing insistence on fleet electrification. Delhi’s Motor Vehicle Aggregator and Delivery Service Provider Scheme, for instance, proposes that only electric bike taxis be permitted. Transport aggregators, on the other hand, argue that because electric vehicles have a higher upfront cost, and many already own a traditional internal combustion engine vehicle, electrification requirements should be brought in gradually.Also Read | ‘Haven’t had airport drop in 5 months’: Goa’s motorcycle taxis are dying slow death“Electrification should be promoted through phased timelines and incentive-based policies rather than immediate exclusion of internal combustion engine (ICE) vehicles,” the CUTS International report said, echoing claims made by online transport aggregators. “States should further recognise bike taxis as instruments of revenue generation through accessible, lightweight permit models that do not require the mandatory commercial conversion of private motorcycles.”Rather than mandating permanent commercial conversion, state governments should adopt a platform-authorised usage model, supported by supplementary insurance endorsement, digital traceability, and clear accountability norms, the report said. Such an approach, it added, would reduce entry barriers while maintaining regulatory oversight, and “shift governance from reactive litigation toward predictable, innovation-enabling regulation that balances safety, labour inclusion, and urban mobility efficiency”.Soumyarendra Barik is a Special Correspondent with The Indian Express, specializing in the complex and evolving intersection of technology, policy, and society. With over five years of newsroom experience, he is a key voice in documenting how digital transformations impact the daily lives of Indian citizens. Expertise & Focus Areas Barik’s reporting delves into the regulatory and human aspects of the tech world. His core areas of focus include: The Gig Economy: He extensively covers the rights and working conditions of gig workers in India. Tech Policy & Regulation: Analysis of policy interventions that impact Big Tech companies and the broader digital ecosystem. Digital Rights: Reporting on data privacy, internet freedom, and India's prevalent digital divide. Authoritativeness & On-Ground Reporting: Barik is known for his immersive and data-driven approach to journalism. A notable example of his commitment to authentic storytelling involves him tailing a food delivery worker for over 12 hours. This investigative piece quantified the meager earnings and physical toll involved in the profession, providing a verified, ground-level perspective often missing in tech reporting. Personal Interests Outside of the newsroom, Soumyarendra is a self-confessed nerd about horology (watches), follows Formula 1 racing closely, and is an avid football fan. Find all stories by Soumyarendra Barik here. ... Read More Tags:bikeConsumerism