Recently, both Ola & Uber launched the two-wheeler-taxi — and promptly the local government told citizens that the service was illegal because 2-wheelers are registered as private vehicles. An excerpt from DNA is below.

The public is requested not to use these bike taxis as they do not have the licence and are illegal,” A senior official quoted in the release said, “Legal action has been initiated. At any time we can take action as these services are illegal. We cannot allow the app-based cab aggregators to play with the commuters’ safety.

While this might be the prescribed approach government & regulators have to follow, the bigger picture is that we are simply missing an opportunity to solve problems that are completely aligned with the government’s and most importantly the citizen’s pain points. In this specific case, when the state of our traffic is like the image above (walking and traveling by car take the same time!), any and all solutions that attempt to improve the situation should be given a chance!

This isn’t a transportation sector concern — it applies to various other sectors. I’ve seen this same issue happen in banking as well — where banks simply refuse to launch anything that the regulator doesn’t allow.

The position that something isn’t already provided for in the law, and the implied perception that anyone trying to question the existing law is criminal is what I have a problem with. At the same time the system — doesn’t have a provision to let such changes happen in an easy and efficient manner — and that’s what we have to fix.

Going with the assumption that we are all on the same side — trying to improve quality of life - there has got to be a better way.

What if there were a provision in the system (law?) to allow innovators a path to provisional approval for pilot projects that in spirit are aligned with the goals of the government and more importantly the citizen.

The requirements could be straightforward:

1. Government states its objectives and encourages the entrepreneurial or private sector to come up with solutions.
2. Each solution is given an opportunity to present its case and be given a go/no-go decision for a prescribed pilot within a week.
3. Perhaps a project plan and budget should be specified — this ensure people with financial muscle cannot game the results by buying their way to success.
4. Based on the project and perceived risk, a reasonable set of guarantees (including financial guarantees) could be taken by the government.
5. Based on the initial results, this could be extended for say 6 months — by which time the law should be amended.
6. The ONLY criterion that should matter is — does the citizen win?

Let’s not stifle innovation — but find a way to leverage it by facilitating it happening in a structured and controlled manner. Let the market decide what sticks and what doesn’t. If a two-wheeler taxi is wrong, the market will reject it — but if its the right thing and solves some major traffic problems, we should encourage it.

A culture of experimentation is how a government can stay relevant and in touch with its citizens — let’s give entrepreneurs an incentive to solve problems that the government should have and wants to. Education, HealthCare, Financial Services, Transportation, Affordable Housing, and many more sectors are ripe for investment and innovation by the private sector — and the government should find a way to co-opt them rather than cut them out. I’d go a step further and say that the government should proactively reach out to the private sector to solicit solutions and empower them to try these out.

The “Na Karta Hai Na Karney Ko Chodta Hai” (I won’t do the work — but won’t let you do either) attitude has got to change — and a government that does will earn the love and loyalty of its citizens.

About the Author - 

Sanjay Swamy is an Entrepreneur & Early-Stage Fintech Investor! #DigitalPayments & #Financial Services Fanatic! #IndiaStack_Evangelist!

This article was originally published on Linkedin