Bike Taxi Ban: Rapido, Uber, Ola Services to Halt from 16 June in Karnataka: Know Reasons Here

Bike Taxi Ban: In a major setback for India's ride-hailing companies, the Karnataka High Court has declined to stay an earlier order suspending bike taxi services across the state. As a result, platforms such as Ola, Rapido and Uber must cease bike taxi operations from Monday, 16 June.

Karnataka High Court Upholds Ban on Bike Taxi Services, Suspension Effective from 16 June

A division bench comprising Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar directed the petitioners and the state's transport department to submit their arguments on merit by 20 June, with the matter scheduled to be heard next on 24 June. In the interim, the single-judge ruling issued on 2 April by Justice B. Shyam Prasad remains in force, mandating a state-wide suspension of such services.

While the petitioners sought interim relief to continue operations, Justice Rao stated that such relief might have been granted if the state government had shown an intention 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.

Rapido, Uber, Ola Bike Taxis Will Be Halted in Karnataka

The ride-hailing firms had appealed the 2 April judgment, which ordered that bike taxi operations be halted within six weeks. That initial deadline of 14 May was later extended, now concluding on 15 June.

Central to the petitioners' case was the argument that in the absence of state-specific regulations, guidelines issued by the central government under the Motor Vehicles Act should prevail-allowing two-wheelers to be used for commercial purposes. However, the state government rebutted this, arguing that the central advisory is not legally binding unless formally adopted.

600,000 Rapido Riders Hit Hard as Platforms Shut Down

Rapido emphasised the scale of disruption that would result from the suspension, warning that over 600,000 riders across Karnataka could be affected. The company stated that more than 75% of these riders rely on the platform as their primary source of income, earning an average of Rs 35,000 per month. In Bengaluru alone, Rapido claims to have paid over Rs 700 crore to its riders ("captains") and contributed more than Rs 100 crore in GST in recent years.

The April ruling underscored the need for proper regulation under Section 93 of the Motor Vehicles Act. Without state-framed rules in place, the court held that all bike taxi operations must be suspended.

Industry Reactions

The technology industry body Nasscom has also intervened, submitting a representation to Karnataka Transport Minister Ramalinga Reddy, urging the government to reconsider the 15 June deadline. Citing Karnataka's prominence as a centre for technology and innovation, Nasscom warned that the suspension could lead to large-scale disruption of livelihoods. It called for a consultative and inclusive approach to policy development.

"The bike taxi ecosystem not only offers affordable and efficient mobility solutions but also sustains the livelihoods of lakhs of gig workers across the state-including students, migrants and women who depend on flexible sources of income," Nasscom stated.