Bike-taxis can create 2 million jobs, generate $4.5 billion in revenue in India: Ola study

Bike-Taxis have the potential to create over two millon livelihood opportunities and revenues of $4.5 billion, predicts a study conducted by Ola Mobility Institute (OMI), a policy research and social innovation think-tank of ride-hailing platform, Ola.

As per the study, titled ‘The Power of Two Wheels Bike-Taxi: India’s New Shared Mobility Frontier,’ two-wheelers are primarily a utilitarian choice for Indians, rather than an aspirational or lifestyle choice, and one in three people in the country use them for their daily commute between home and work.

India is the world’s largest two-wheeler (2W) market and 2Ws constitute 81% of the automobiles sold in the country,contributing significantly to the country’s GDP. As per SIAM (2019) data, some 63,000 2Ws are sold in the country every day and for every 1,000 people, there are 102 2Ws here.

“The figures of ownership, usage, and market size of 2Ws truly paint a holistic picture of the ubiquity of 2Ws in India. This asset category has become a symbol of empowerment for the (hitherto) under-represented communities as can be gleaned from its widespread use,’’ said the report.

The study also emphasised the importance of legalising bike-taxi operations in the country, after analysing data from Ola’s bike-taxi operations and interviews with 100 plus drivers affiliated to bike-taxi platforms in Gurugram and Jaipur.

“Bike-taxis are a popular choice of intra-city travel in India’s urban agglomerations as well as the hinterlands. Bike-taxi operations in Gurugram, for instance, witnessed 100% growth in the number of bookings within seven months of launch.’’

Further, with 70-85% of the rides under 7 km in cities of varying sizes, bike-taxis are an effective mode of travel for short distances. The widespread promotion and use of bike-taxis is therefore expected to shift individuals from their private cars with low occupancy to shared mobility such as bike-taxis. This will, thereby, reduce traffic congestion and the need for individualised parking spots all over the city, observed the study.