Ola, Rapido, and Uber to halt bike taxi services in Karnataka from June 16

In a major setback for India’s ride-hailing giants, the Karnataka High Court has declined to stay a order suspending bike taxi operations across the state, effectively forcing services like Ola, Rapido and Uber to cease such offerings from Monday, June 16.

The division bench, led by Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar, directed the petitioners and the state transport department to submit arguments on merit by June 20. The matter will be heard next on June 24. In the meantime, the April 2 ruling by Justice B. Shyam Prasad—mandating a statewide suspension of bike taxi services—will remain in force.

Policy paralysis and judicial observations

While the petitioners sought interim relief to continue operations, Justice Rao noted that such relief could have been granted had the state government shown intent to introduce a regulatory framework. “The state government has clearly made a policy decision (of not being interested in framing a bike taxi policy),” the bench observed.

The ride-hailing firms approached the division bench after a single-judge order in April had mandated the halt of operations within six weeks. That deadline, originally expiring on May 14, was extended once and now concludes on June 15.

Central to the petitioners' argument was the assertion that in the absence of state-level rules, guidelines issued by the central government under the Motor Vehicles Act should govern the use of two-wheelers for commercial transport. However, the state rebutted this, stating that the Centre’s advisory was not binding unless formally adopted.

Rapido underscored the scale of disruption the suspension could cause, warning of “livelihood impacts” for over 600,000 riders across Karnataka. The firm stated that more than 75% of its riders depend on the platform as their main source of income, earning an average of Rs 35,000 per month. In Bengaluru alone, Rapido claimed to have paid Rs 700 crore to captains and contributed over Rs 100 crore in GST over recent years.

The April 2 ruling emphasized that bike taxi services should be regulated through rules framed under Section 93 of the Motor Vehicles Act. Without such rules, all such operations must be halted.

Industry appeals and broader concerns

The industry body Nasscom has also intervened, submitting a representation to Karnataka Transport Minister Ramalinga Reddy urging the government to reconsider the June 15 deadline. Emphasizing Karnataka’s status as a hub for tech-driven innovation, Nasscom warned of “large-scale livelihood disruption” and called for a consultative approach to drafting a regulatory framework.

“The ecosystem not only offers affordable and efficient mobility but also sustains lakhs of gig workers across the state,” Nasscom stated, citing workers including students, migrants, and women who rely on flexible income streams.