Karnataka HC orders suspension of bike taxi services, directs state to frame regulations

In a significant ruling, the Karnataka High Court has directed bike taxi aggregators, including Rapido, Uber, and Ola, to suspend their services within six weeks unless the state government establishes clear regulations under Section 3 of the Motor Vehicles Act, 1988. The court has also granted the government three months to frame the necessary rules governing bike taxi operations.

Justice B.M. Shyam Prasad, delivering the verdict on April 2, stated that all petitioners must cease operations until appropriate policies are in place. “The transport department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until proper government regulations are formulated,” he emphasized.

Govt to review and act on the verdict

State Transport Minister Ramalinga Reddy said that the government would review the certified order before taking action. “The court has granted six weeks for aggregators to cease operations and given the state time to frame appropriate guidelines. We will act accordingly,” Reddy added.

A Rapido spokesperson expressed concern over the impact on bike taxi riders, stating that the company would explore legal remedies once the detailed order was available.

The legal battle and crackdown on bike taxis

Rapido’s parent company, Roppen Transportation Services Limited, introduced bike taxi services in Karnataka in 2016, addressing demand for affordable transport. However, the state Transport Department declared these operations illegal, arguing that private vehicles with white number plates cannot be used commercially. This led to crackdowns, including bike seizures in 2019 and 2022, following protests from auto-rickshaw and cab unions.

In response, Rapido approached the Karnataka High Court, seeking authorization for two-wheelers to be registered as transport vehicles. The case prompted a temporary relief order in 2021, preventing authorities from taking coercive action against bike taxis while legal proceedings continued.

The state later introduced the Karnataka Electric Bike Taxi Scheme in July 2021, permitting only electric bike taxis. However, citing misuse and safety concerns, particularly for women passengers, the government withdrew the scheme in March 2024. Despite this, Rapido continued operations, relying on court protection.

Industry reactions and future of bike taxis

Autorickshaw drivers welcomed the ruling, seeing it as a move to protect their livelihoods. Rudramurthy, General Secretary of the Auto Rickshaw Drivers’ Union (ARDU), said, “This is a relief for auto drivers, but we must also commit to fair pricing and better service for passengers.”

Urban mobility expert Satya Arikutharam emphasized that bike taxis are inherently unsafe and suggested shared auto-rickshaw services as an alternative. “The state must regulate auto fares and services rather than engaging in prolonged legal battles with aggregators,” he added.

Besides Karnataka, Rapido is facing similar legal challenges in Maharashtra, Delhi, and Assam, where bike taxis have been broadly banned from operating without commercial licenses or permits.

With the Karnataka government now tasked with drafting comprehensive regulations, the future of bike taxis in the state remains uncertain.