In a significant setback for ride-hailing giants Ola, Uber, and Rapido, the Karnataka High Court has ordered them to shut down their bike taxi services in the state. The court has given them six weeks to comply, stating that operations cannot resume until the government establishes clear regulations under the Motor Vehicles Act, 1988.
Legal Roadblock: No Clear Rules, No Bike Taxis
Justice B.M. Shyam Prasad, who issued the ruling, made it clear that transport authorities cannot register motorcycles as commercial transport vehicles or issue permits for bike taxis unless a proper legal framework is in place.
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“The transport department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate government regulations are in place,” Justice Prasad stated.
The Karnataka government now has three months to draft these regulations. Transport Minister Ramalinga Reddy said the government will use this time to create a framework that ensures safety and operational clarity for bike taxi services.
Rapido Pushes Back, Raises Concerns Over Livelihoods
The ruling has sparked concerns, particularly for Rapido, which was founded in Karnataka and has a massive user base in the state. A Rapido spokesperson voiced worries about the thousands of drivers who depend on the platform for their income.
“The Hon’ble High Court of Karnataka has directed aggregators to cease bike taxi operations after six weeks. While we will comply with the order, we are deeply concerned about the impact on the livelihoods of our captains. Once the detailed order is available, we will explore all legal options to protect their interests,” the spokesperson said.
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A Long-Standing Legal Battle
Bike taxis have existed in a legal gray area in Karnataka for years. In 2021, the state introduced the Karnataka Electric Bike Taxi Scheme, which only allowed electric two-wheelers to operate as bike taxis. However, most services continued using petrol-powered bikes, leading to ongoing disputes with regulators.
With the latest court order, the future of bike taxis in Karnataka remains uncertain. While companies like Rapido and Uber are expected to challenge the decision, the government’s next move—whether to regulate or permanently ban bike taxis—will determine how the industry evolves in the state.
