Relief for ride-sharing platforms as Delhi HC put stays on Transport Department notice

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IANS | 26 May, 2023
In a major relief to Ola, Uber, and Rapido, the Delhi High Court on Friday put a stay on the public notice and show cause notice issued by the city Transport Department, halting the ride-sharing platforms.

A division bench of Justices Suresh Kumar Kait and Neena Bansal Krishna directed the Transport Department to refrain from taking any coercive measures against Rapido and other ride-sharing platforms until a comprehensive policy is formulated.

In February, the app-based aggregators were prevented from plying bike taxis on the road without commercial permits.

The Transport Department, ordering an immediate halt to the bike taxi services provided by these platforms, had warned that any violation will result in penal action.

The public notice by the Transport Department said that the companies defying the orders will be fined up to Rs 1 lakh, as the use of bikes for commercial purposes violated the Motor Vehicles Act, 1988.

Following the High Court decision, Uber has expressed its gratitude towards the court's order providing protection to the company against coercive actions regarding its bike taxi service in the capital city.

"We welcome the High Court's order to give Uber protection from coercive action on bike taxis in Delhi. This will bring relief to drivers on our platform whose livelihood had been impacted by the ban as also to the hundreds and thousands of riders who choose to ride on Moto for affordability and last mile connectivity. We are committed to serving the city and being the platform of choice for riders and drivers alike," said Uber in a statement.