Gurgaon: Cab aggregator majors Uber and Ola jolted the Indian bike taxi market on Thursday by announcing their forays into the market, with pilots in Bengaluru. Gurgaon, with five operators already in business could very well be their next target.
Local players had a mixed reaction to the news. Some are glad the entry of biggies will validate their business - so far under media scrutiny - with investors. Others felt the big players might use their muscle to spoil consumers. "This is a good development. With so many questions on the long-term prospects of bike taxis, I'm glad these names will bring much-deserved validation for our service," said Mohit Sharma, co-founder at Bikxie.
Baxi founders agreed, saying the entry of Ola and Uber validates the business for on-demand bike taxis in India. "It's also good to see Uber has priced its service sensibly. Like us, they are not burning cash. The market for bike taxis is at least 10-20 times bigger than of cabs and autos, and there's space for all of us to co-exist," said Manu Rana, co-founder, Baxi.
Another area where more players and their scale can make an impact is regulation. There is yet no provision for commercial two-wheeler taxis under the Motor Vehicles Act. Most Gurgaon players are operating with yellow number plates but they don't have commercial licenses. According to sources, Ola will be launching with white number plates in Bengaluru.
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