In a significant ruling, the Karnataka High Court has directed bike taxi aggregators, including Rapido, Ola, and Uber, to halt their operations in the state within six weeks. The decision comes as the court emphasized that such services cannot function unless the state government establishes clear regulations under Section 93 of the Motor Vehicles Act, 1988.
Justice B M Shyam Prasad, while delivering the judgment, stated that the transport department cannot issue permits for motorcycles to operate as transport vehicles until appropriate rules are in place. Consequently, the court has mandated the state government and transport authorities to ensure that bike taxi operations cease within the stipulated timeframe.
Government’s Response
Karnataka’s Transport Minister Ramalinga Reddy acknowledged the ruling, stating, “We will review the order carefully and take necessary steps in accordance with the court’s direction. The government will also work on drafting guidelines for bike taxi operations during this period.”
A spokesperson for Rapido expressed concerns over the impact on its riders, stating that the company would explore legal remedies once the detailed order is available. Rapido, which originated in Karnataka, has onboarded lakhs of bike taxi captains and plays a significant role in urban transportation.
Legal Battle and Past Challenges
Bike taxi services have faced legal hurdles in Karnataka since their inception. Rapido launched operations in 2016, but the state transport department deemed them illegal, arguing that private two-wheelers (with white number plates) could not be used for commercial purposes.
Multiple crackdowns followed, with authorities seizing hundreds of bikes in 2019 and 2022 due to protests from auto and cab unions. In response, Rapido approached the Karnataka High Court, seeking approval to register its bikes as transport vehicles and obtain permits under the Motor Vehicles Act.
In 2021, the Karnataka government introduced the Electric Bike Taxi Scheme, allowing bike taxis but restricting them to electric vehicles (EVs). However, the scheme was withdrawn in March 2024 due to safety concerns and misuse, leading to renewed legal disputes.
Safety and Regulatory Concerns
During the hearing, the court referenced a 2019 expert committee report highlighting safety concerns associated with bike taxis. The judgment also acknowledged tensions between auto-rickshaw drivers and bike taxi operators, which have led to conflicts over fare structures and passenger rights.
While the court’s decision provides relief to auto-rickshaw unions, urban mobility experts argue that alternative solutions, such as regulated shared auto services, should be explored.
As bike taxi aggregators face similar legal battles in Maharashtra, Delhi, and Assam, Karnataka’s ruling adds another layer of complexity to their operations. The court has given both the state government and the transport department time to establish appropriate regulations, leaving the future of bike taxis in Karnataka uncertain.
