Karnataka HC Asks Ola, Uber, Rapido To Halt Bike Taxi Services Till Rules Framed; 6 Week Reprieve Granted

Bengaluru: The Karnataka High Court has ordered all app-based ride-hailing services in the state to halt their bike taxi services, with an ultimatum of six weeks to cease their activities. The order was ruled on Wednesday, April 2, after hearing petitions from leading aggregators Rapido, Uber India, and Ola, who had sought permission to operate bike taxis under the Motor Vehicles Act, 1988.

According to a report by Bar & Bench, the judgment, pronounced by Justice BM Shyam Prasad, stated that bike taxis cannot function in the state until the government formulates appropriate rules under Section 93 of the Motor Vehicles Act.

The court also disposed all the petitions filed by the platforms, which requested aggregator licenses and registration for their bike taxis as transport services. The state government had previously issued an order in July 2021 restricting bike taxi services, which also resulted in a legal dispute.

As part of the ruling, the court has given the state government three months to draft regulations for the operation of bike taxis. Transport Minister Ramalinga Reddy also welcomed the ruling, noting that app-based platforms had been operating without regulations, raising concerns about safety of the passengers.

Despite the ruling, executives at the ride-hailing platforms expressed their intention to appeal the decision. As per a report by The Economic Times, a senior executive from one of the companies confirmed that they would challenge the order, citing the central government’s stance that motorcycles are classified as contract carriage vehicles under the Motor Vehicles Act. Since transportation is a state subject, however, it is up to individual states to regulate bike taxi services.

Rapido, a Karnataka-based platform, also voiced concerns over the welfare of the lakhs of bike taxi captains using the service, stating it would evaluate appropriate legal steps once the detailed order is available. During the hearings, Rapido also emphasised on the significant role its operations played in Karnataka’s transportation ecosystem, with over 10 lakh riders and 20 lakh rides every week.

Other states have also started addressing the bike taxi issue, with Delhi and Maharashtra recently introducing policies allowing bike taxis under certain conditions. However, Karnataka remains firm on its stance until regulations are in place. This ruling is expected to have wider implications for the future of bike taxi services across India.