Uber Says Unfeasible EV Mandates Risk Finishing Off Bike Taxi Sector

As the Delhi government contemplates a regulatory framework that will likely allow only electric vehicles (EV) to function as bike taxis, ride-hailing giant Uber said the time is right for deeper industry dialogue. Uber said that steep and infeasible EV mandates risk finishing off the sector and there is a need to help shared mobility drivers make a fair and equitable transition.

“The impact of such a decision on the livelihoods and mobility needs of millions of Delhiites is clear. Transition, after all, is possible only if the businesses are still running,” said Shiva Shailendran, Director, Uber, in a company blog post on Friday. “Sustainability is a shared goal and no one can get there on their own. While we look for bold, ambitious ways to reach the zero emissions target, we need to find every way possible to help shared mobility drivers make a fair and equitable transition.”

These comments come at a time when the Delhi Transport Department recently asked mobility players such as Uber, Ola and Rapido to stop plying their bike taxi services. The Delhi Transport Department on February 20 issued a public notice and directed such platforms to immediately stop operations to avoid prosecution and penalty.

Uber said the goal that the Delhi government has set for itself on sustainability is no different from the company’s path to get there. It said there is a need to negotiate with care to ensure the transition to EVs is fair and equitable. It urged the government to initiate an industry dialogue so that one can arrive at a joint path to electrification.

Uber said as one reimagines mobility for the masses, there is a need to solve for access to mobility by building options that are affordable to a larger section of the population – and two-wheelers are fundamental to that change. It said hundreds of thousands of people in Delhi use two-wheelers across ridesharing platforms, accounting for estimated 20 lakh trips every month. In 2022, over 19 lakh trips took place to and from metro stations in NCR on Uber Moto, underscoring the need-gap bike taxis fill in solving for the last mile commute.

Besides being affordable, quick, and time-saving for riders, Uber said two-wheeler mobility products support the livelihood of over 1 lakh drivers in Delhi who use their bikes to provide mobility and make an earning.

“For some, it is their only source of income while for others, it is a means to supplement earnings from other jobs,” said Shailendran. “Despite the industry’s nascency, its pervasive use is a testament to its popularity with commuters and importance to earners.”

To make a just transition, Uber said it is equally important to create a level-playing field across industries. The firm said different electrification mandates for ridesharing and delivery sectors, not only lead to inequitable sharing of responsibility, but also provide a disadvantage to the entire industry. Two-wheeler ridesharing apps should be seen at parity with others like delivery and services.

Uber said the number of delivery rides far surpasses the two-wheeler mobility rides for commuters. But they are being given a more practical timeframe for the electrification of their fleet. Given the economics around EV vs Petrol bikes, tech platforms need to invest heavily to keep driver earnings on EV bikes at parity with petrol bikes, irrespective of delivery or ridesharing. Thus it is only fair that the timelines for the conversion of the fleet should be the same across sectors. Uber said it is ready to commit to the same phased electrification mandates including full fleet electrification timelines as suggested for delivery companies.

Uber said the Delhi government’s focus towards EV transition can work as a springboard towards EV adoption and the ridesharing sector can be the catalyst towards that change. In India, Uber has made the biggest sustainability commitment in the ridesharing sector by partnering with India’s leading carmaker to bring 25,000 EVs onto the platform.

“We reaffirm our commitment to 100 per cent rides taking place in zero-emission vehicles, on public transit, or with micro-mobility by 2040 – including in India,” said Shailendran.