<article>When 62 <a style="color: #000080;" href="https://www.uber.com" target="_blank">Uber</a> motorcycle taxis were confiscated by Bangalore authorities in March, the world&#8217;s most valuable startup was hopeful that the situation will eventually be resolved.</article>

When 62 <a style="color: #000080;" href="https://www.uber.com" target="_blank">Uber</a> motorcycle taxis were confiscated by Bangalore authorities in March, the world&#8217;s most valuable startup was hopeful that the situation will eventually be resolved.
After all it had run into trouble in Delhi with its cab service, and has continued to operate despite not meeting the government&#8217;s norms.
But this time Uber failed to make it work. The government was adamant on not allowing its service to run until Uber and its home-grown rival <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Ola" target="_blank">Ola</a> have the necessary permits from the local transport authority. Uber decided to suspend the service Wednesday.
“We have received tremendous response from drivers and riders in Bengaluru to our UberMOTO pilot. We will share our learnings with the government and work closely with them to create progressive, technology-friendly regulatory framework,&#8221; said an Uber India spokesperson.
The state of Karnataka, of which Bangalore is the capital, is due to release its first draft of rules for motorcycle taxis in four weeks. That is likely to be similar to the regulations it made in Karnataka On-demand Transportation Technology Aggregators Rules 2016 put in place earlier this year.
Under current laws, two-wheelers can&#8217;t be used to carry passengers for hire, or goods other than personal belongings.
Not all motorcycle taxis are banned. Another startup Rapido has about 400 two-wheelers on its app and offers ride-sharing services. The difference between that and Uber&#8217;s service is that Rapido does not charge the driver. Its rides cost Rs 5 per kilometer, in addition to a Rs 10 booking fee.
Uber had said that it will stop collecting a fee from its drivers, something that it previously tried in Delhi for its cabs when they were banned last year. But the Bangalore authorities then raised objection over usage of two-wheelers for commercial purposes, and validity of insurance in case of accidents. Its negotiations with the state government ultimately failed.
Ola has been lying low on this issue, and is waiting for the new rules to come into effect before re-starting its bike-hailing service.
Also read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/30371-uber-30371/" target="_blank">India: Karnataka state moots ban on surge price, licensing for Uber, Ola</a> 
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<h3>Bangkok worries</h3>
Also on Wednesday, about 2,480 kilometers away from Bangalore, Uber suffered another blow to its bike service.
Authorities in Bangkok, Thailand, ordered Uber Technologies and <a style="color: #000080;" href="https://www.grab.com/id/en/car/" target="_blank">Grab</a> to halt their motorcycle taxi-hailing services.
There are about 186,000 motorcycles registered to provide taxi services in Thailand, and half of them are in Bangkok. But unlike them, the motorcyles run by UberMoto and Grab Bike did not have the required registration to operate as taxis.
While Grab Bike has said that it will work with the government to resolve the issue, Uber has chosen to suspend the service.
&#8220;Despite strong support from Thai riders and drivers, we have decided to temporarily suspend our Bangkok pilot, starting at noon while we work on creating modern regulations for app-based motorbike services with the government,&#8221; said Prayer Trairatvorakul, Marketing Manager of Uber.
Uber had launched the Bangalore motorcycle taxi service in March. Bangkok had started a month earlier.
And this adds to the problems Uber has faced in Indonesia, where thousands of public transportation drivers took to the streets of Jakarta in protest in March, and some of that turned violent.
Such setbacks in Asia are showing that Uber&#8217;s much-vaunted negotiation skills are falling short with certain governments. It&#8217;s only success — if it can be called that — has been in Gurgaon, Haryana, where the government has allowed motorcycle taxis and has laid out a clear set of regulations for them to follow.
Uber&#8217;s rivals are also facing similar issues but have shown more patience in letting the government come up with new regulation. Or like, Rapido in Bangalore, they have better outreach with government officials, something that Indonesia&#8217;s <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Go-Jek" target="_blank">Go-Jek</a> has also been more successful at.
“Staring a service without a license just because existing laws don’t cover it is not the right way to go,” said an investor in one of the services, who did not want to be named. “It is best to first get approvals and then start the service.”
It faces formidable competition from the likes of Ola in India, and Grab in Southeast Asia. If Uber wants to resolve its issues and capture wider marketshare in the bike segment, it might need a different strategy than the current one.
(With inputs from Chalida Ekvitthayavechnukul in Thailand)
Also read:
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When 62 Uber motorcycle taxis were confiscated by Bangalore authorities in March, the world's most valuable startup was hopeful of resolution.

Uber is losing the bike-hailing sector from Bangalore to Bangkok

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Uber is losing the bike-hailing sector from Bangalore to Bangkok

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