# Bengaluru Traffic Shifts Yulu's Business Model

> Yulu pivots from bike rentals to delivery services after traffic woes.
- Title: Bengaluru Traffic Shifts Yulu's Business Model | Shortify
- Summary: Yulu pivots from bike rentals to delivery services after traffic woes. Yulu shifted from short urban bike rentals to electric delivery vehicles after traffic…
- Keywords: yulu, bengaluru, electric bikes, delivery services, gig workers, funding round, magna international, bajaj, business, money, news, Traffic
- Source: Financialexpress — https://financialexpress.com/business/news/big-idea-the-traffic-problem/4353406
- Author: Anees Hussain
- Published: 2026-10-04T13:26:29+00:00
- Read time: 1 min
- Topics: yulu, bengaluru, electric bikes, delivery services, gig workers, funding round, magna international, bajaj, business, money, news
## Amit Gupta's traffic frustration
Amit Gupta planned to retire at 40 but Bengaluru traffic made his commute take an hour instead of 10 minutes.

> I thought this menace of traffic will only get worse
## Yulu's initial bike rental model
Yulu launched in early 2018 with QR code bike rentals for short urban commutes but users preferred fitness over daily travel.

> People were using those pedal cycles more for fitness and leisure, rather than the daily commute
## Yulu pivots to delivery services
Yulu shifted to low-speed electric bikes for delivery riders after offices closed during Covid, finding new use for idle assets.

> We thought why don’t we offer our bikes to these riders on a fixed rental
## Funding and fleet expansion
Yulu raised $198 million in equity and $49 million in debt, with 50,000 bikes including 2,500 Miracles for commuters and 700-800 Express vehicles.

> The fleet is around 50,000, comprising the Miracle for commuters, the DeX for delivery riders and the Yulu Express, a two-seater
## Yulu's new business focus
Yulu plans to deploy 7,000-8,000 Miracles for commuters and double its fleet in a year while targeting delivery aggregators like Rapido and Uber.

> Yulu plans to put 7,000-8,000 Miracles back on Bengaluru’s roads over the next two to three quarters
## Regulatory challenges ahead
Yulu faces potential regulatory shifts as the government considers raising power limits for low-speed vehicles from 250 watts to 600 watts.

> A draft from the Ministry of Road Transport and Highways proposes raising the power limit for low-speed vehicles from 250 watts to 600 watts
## Key takeaway

Yulu shifted from short urban bike rentals to electric delivery vehicles after traffic in Bengaluru worsened, now targeting food delivery and gig workers with a fleet of 50,000 bikes.