Unlocking the potential of bike-taxis in India

Growing transportation demand along with rapid urbanisation has started to burden urban infrastructure. Preference for personal mobility coupled with low utilisation of public transportation systems, such as the metro rails, has led to increasing traffic congestion in Indian cities and towns. It is estimated that traffic congestion is expected to cost the Indian economy USD 22 billion per year across just New Delhi, Mumbai, Bengaluru, and Kolkata. This report explores the twin role bike-taxis can play in aiding the public mobility ecosystem in India by offering a convenient last-mile connectivity option, as well as providing employment opportunities to several million Indian youth. The report also brings out the legitimacy challenges and headwinds faced by the bike-taxis industry due to the absence of a uniform nation-wide policy structure. While there is a favourable central government policy, more needs to be done at the state level to bring out clearer regulations for the adoption of bike-taxis. The report concludes by presenting potential structural initiatives that could provide a fillip to the bike taxi market in the years to come.