As app-based auto rides get costlier, bike taxis in demand

As app-based auto rides get costlier, bike taxis in demand

Ram.Sundaram@timesgroup.com

Chennai: 17.12.2021

With app-based auto rides getting expensive in Chennai from next month, demand for bike taxis is likely to shoot up.

Experts said the state government has been largely unsuccessful in regulating auto rickshaw fares in the city. The transport department in 2013 announced that GPS-based fare metres will be made mandatory for auto-rickshaws here.

Apart from trial runs, not much progress has been made in this aspect. When cab-aggregators Ola and Uber introduced auto booking services in 2016, there was some form of transparency in fares. But now the estimated base fare will rise because the Union government has introduced a five percent Goods and Services Tax (GST) for auto rides booked through mobile apps. The new regime is expected to come into effect from January

1. Cab-aggregators like Uber have requested the Centre to repeal this announcement as it might affect the earnings of the auto drivers and the government's digitisation attempts.

Transportation activists have termed the move “regressive”. Rama Rao from the Traffic and Transportation Forum, Chennai said, "The move to impose five percent GST will greatly affect the office-goers and middle class section of the commuters as cab-aggregators will definitely pass on the financial burden onto the public".

Auto drivers in the city were among the worst-affected during the pandemic. This move will cause more financial problems to them, he said.

Experts predict that more people might opt for bike taxis instead. They are at least 30% cheaper compared to autos. Currently, there are more than 6,000 bike taxis. It was less than 500 during the launch two years ago. The state is yet to clear legalities associated with bike taxis.