Karnataka High Court bans Ola, Uber, and Rapido bike taxi services; Here's why

In a major blow to ride-hailing platforms, the Karnataka High Court has ordered Ola, Uber and Rapido to stop offering bike taxi services in the state, granting them six weeks to comply.

Justice B.M. Shyam Prasad, who issued the order, clarified that these companies cannot resume operations until the government introduces proper guidelines under Section 3 of the Motor Vehicles Act, 1988, and frames the necessary rules for bike taxis.

Court's directive

Justice Prasad underscored that transport authorities cannot register motorcycles as transport vehicles or issue contract carriage permits unless specific regulations are in place.

"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 B M Shyam Prasad said.

The state government has been given three months to establish these rules. Transport Minister Ramalinga Reddy said the administration will wait for the final court order and use the allotted time to draft a framework that addresses safety and operational concerns.

A spokesperson from Rapido, a homegrown platform headquartered in Karnataka, voiced worry about the impact of the suspension on the many riders depending on bike taxi services for their livelihoods. 

“The Hon’ble High Court of Karnataka has directed aggregators to cease operations of bike taxis after six weeks and accordingly directed the State Transport Department to not take any adverse action within such time. Karnataka-born Rapido is concerned about the welfare of lakhs of bike-taxi captains onboarded on the platform, and will evaluate and pursue appropriate legal remedies once the detailed order is made available,” the spokesperson said.

Background and ongoing legal battle

Bike taxi services have operated in a legal gray area in Karnataka for several years. In 2021, the state launched the Karnataka Electric Bike Taxi Scheme, allowing only electric two-wheelers in an attempt to promote environmentally friendly transport.

However, this scheme was withdrawn in March 2024 due to safety concerns and reports that non-electric bikes were continuing to ferry passengers. While the scheme was in place, the High Court issued an interim order protecting operators like Rapido from immediate government action.

Autorickshaw and cab drivers, however, frequently objected to bike taxis, claiming that unregistered services cut into their earnings and fell outside existing regulations.

Tensions with auto drivers and safety concerns

Conflicts erupted when autorickshaw unions complained about losing income because of bike taxis using white number plates meant for private vehicles. Authorities seized hundreds of motorcycles that were allegedly offering commercial rides in violation of the law.

Some urban mobility experts argue that two-wheelers are unsafe for public transport, calling instead for stronger regulation of autorickshaws or shared auto services. They stress that government guidelines should be clear and that aggregator services need to respect state policies rather than engage in prolonged legal disputes.