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Swiggy and Zomato Seek Clarity on Delhi Government’s Bike-Taxi Ban Order

Two food delivery apps, Swiggy and Zomato, have reached out to the Delhi government to clarify the ban on bike taxi services in the national capital. The companies claim that their two-wheeler riders are being wrongly issued challans, which are fines, in the name of this ban. They argue that the ban is only applicable to bike taxi service providers and not food delivery riders. Swiggy has informed the government that its delivery executives are being fined up to Rs. 15,000, causing fear and apprehension among them. Meanwhile, Zomato has said that the notification has been misinterpreted by Regional Transport Office officials who have started issuing challans to delivery partners.

The Delhi transport department had cautioned bike taxis against plying on the roads of Delhi last month, citing a violation of the Motor Vehicles Act, 1988, that would make aggregators liable for a fine of Rs. 1 lakh. The use of two-wheelers for commercial purposes is in violation of the Motor Vehicles Act, 1988. The first offence could lead to a fine of Rs 5,000 while a second offence could incur a Rs. 10,000 fine and imprisonment of up to a year, the department said in a public notice. The driver could also lose their licence for three months under the circumstances.

Swiggy has written to the government, explaining that the recent changes in regulations on bike taxi services in Delhi have caused confusion and disruption to food/quick commerce delivery aggregators. The company has requested clarity on the government’s directive and emphasized that ensuring smooth operations for their delivery executives is their top priority.

Zomato has also reached out to the Delhi government’s transport department, seeking urgent intervention in the matter. The company’s Group Vice President of Public Policy, Regulatory, and Sustainability has said that the notification has been misinterpreted by RTO officials, who have started issuing challans to delivery partners who have been operating for last-mile delivery aggregators such as food delivery aggregators and e-commerce operators. This has disrupted services and created confusion among delivery partners, who are now apprehensive of providing their service with a fear of being penalised and harassed while on duty.

The companies claim that the recent directive has caused disruption and confusion in their operations, resulting in fear and apprehension among their delivery executives. They are seeking urgent clarification from the government to ensure smooth operations and uninterrupted services for their customers.

In conclusion, it is crucial for the Delhi government to provide clarity on the directive and ensure that its implementation does not cause any unintended consequences for food delivery riders. It is essential to strike a balance between regulating the use of two-wheelers for commercial purposes and ensuring the smooth functioning of food delivery and e-commerce aggregators in the national capital.

Edited by Jaydev Published On: March 2nd, 2023

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