Karnataka’s ride-hailing scene faces a major jolt. The state’s High Court has refused to pause an earlier decision banning bike taxi services, forcing platforms like Rapido, Ola, and Uber to pull the plug on their two-wheeler operations starting Monday, June 16.
The verdict came from a division bench headed by Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar, which made it clear that the previous ruling—issued by Justice B. Shyam Prasad on April 2—will continue to hold. The next hearing has been scheduled for June 24, with both the companies and the state transport department expected to present their arguments in full by June 20.
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A Policy Void and a Legal Tussle
The companies had been hoping for some breathing room while a more permanent solution was debated, but the court didn’t budge. The judges pointed to the government’s continued indecision on creating any regulatory framework for bike taxis. “Had the state shown a willingness to bring in proper rules, interim relief could have been considered,” noted Justice Rao during the proceedings.
This legal saga began when a single-judge bench ordered the suspension of bike taxi operations across the state, setting a six-week compliance deadline that was first extended to May 14 and later to June 15. With that window now closed, platforms are compelled to comply immediately.
The Battle of Rules: Centre vs State
At the heart of the dispute is a clash over regulatory authority. Ride-hailing firms argue that in the absence of local laws, central government guidelines under the Motor Vehicles Act should take precedence. The Karnataka government, however, maintains that those guidelines carry no legal weight unless officially adopted at the state level.
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Rapido Rings the Alarm on Job Losses
Rapido, one of the worst-hit players, didn’t mince words about the fallout. The company warned that over 600,000 riders across Karnataka could lose their income streams overnight. It claims that nearly three-quarters of its drivers rely on the platform as their primary livelihood, earning around ₹35,000 per month.
In Bengaluru alone, Rapido said it had paid out ₹700 crore to riders and contributed over ₹100 crore in GST—figures it presented to underline the scale of economic disruption the ban could trigger.
The April order had cited the need for bike taxi operations to be governed under Section 93 of the Motor Vehicles Act, which requires formal rules to allow any such services. Until then, the court ruled, these operations must stay off the roads.
