Earlier this month, we had reported that taxi aggregator Ola had started a radio bike taxi service in Bengaluru. However, the transport department deemed the service illegal and asked citizens not to use it.

Now, Ola has withdrawn the service. The company has not given any reasons for discontinuing the service. The Regional Transport Authority has said that Ola will need to obtain a licence to operate and has seized bikes that were running without the necessary permissions.

Meanwhile, Uber - Ola's rival - continues to operate UberMoto, its bike taxi service in Bengaluru.

Bike taxis are being operated in various cities in India. Hiring a bike taxi is much cheaper than an autorickshaw or car. This makes the service very popular among solo commuters.

Source: ET Auto

Over the past few months several companies have identified the radio bike taxi market as an untapped market. In Bangalore, over the past few months Rapido and Uber (among others) have entered this market. Now, Ola has announced the launch of its pilot initiative of bike taxis in Bangalore.

At a minimum fare of Rs. 30, these bike taxis will serve as a means to ferry customers across the city with an introductory fare of Rs. 2 per km and Re. 1 per minute of trip time.

The two-wheeler transportation option will be available on the Ola mobile app and will provide users with the same experience as that of booking a cab i.e. driver details displayed, SOS, live tracking and payment using Ola Money. Also, all pillion riders will be provided helmets.

Mercedes-Benz Research and Development India (MBRDI) has inaugurated its second dedicated facility, at Whitefield, Bangalore. Located near the MBRDI HQ in Whitefield Palms, the "Embassy Crest" facility is spread over an area of 2,66,000 sqft. The new centre has a capacity to house more than 2,400 employees.

Manu Saale, MD & CEO MBRDI, stated that MBRDI has an 18 year old history in India. He added that the brand's growth strategy focuses on "harnessing local capabilities." The location is strategically placed given Bangalore's strong IT background.

MBRDI was founded in 1996. The division focuses on topics ranging from computer-aided design and simulations (CAD, CAE) for powertrain, chassis and exteriors to embedded systems, telematics and developing various IT applications and tools.