As of June 16, 2025, bike taxi services in Karnataka, including major operators like Ola, Uber, and Rapido, have ceased operations following a directive from the Karnataka High Court. The court upheld the state government's ban on these services, citing the absence of a regulatory framework under the Motor Vehicles Act, 1988. This decision has significant implications for urban mobility, the gig economy, and the livelihoods of thousands of drivers in Bengaluru and across the state.
Why Karnataka Banned Bike Taxis: Impact on Ola, Uber, Rapido & Bengaluru Commuters
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| In response to a high court ruling, Karnataka's transport department is implementing a ban on bike taxi services provided by aggregators such as Rapido, Ola, and Uber. | Image source- Rapido.com |
The roots of the current ban trace back to a series of legal and regulatory challenges. In April 2025, Justice B.M. Shyam Prasad of the Karnataka High Court directed bike taxi aggregators to cease operations within six weeks, unless the state government established specific guidelines under Section 93 of the Motor Vehicles Act. This ruling followed concerns over safety, the use of non-transport vehicles, and the lack of a formal policy governing bike taxi services. Despite appeals from operators, the court refused to grant a stay, effectively enforcing the ban starting June 16.
NASSCOM (National association of software and service companies) has officially requested Karnataka's transport minister, Ramalinga Reddy, to promptly take action in establishing a definitive policy framework for bike taxi services- an article by TimesOfIndia reads. NASSCOM emphasized that the deadline of June 15th needs to be prolonged, as the prohibition is affecting the livelihoods of numerous gig workers.
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| Because of Bike Taxi ban, Nasscom has urged the government to establish a regulatory framework and extend the deadline of 15th June.| Image source - Pexels.com |
Impact on Bike Taxi ban on Stakeholders
Bike taxis have been a popular mode of transport in Bengaluru, especially for short-distance travel and navigating traffic-congested areas. The ban has disrupted daily commuting for many residents who relied on these services for affordability and convenience. Alternative modes of transport, such as auto-rickshaws and public buses, are now facing increased demand, potentially leading to overcrowding and longer wait times. The prohibition will quickly affect more than 600,000 riders and commuters, based on estimates from Rapido submitted to the court. Social media has heightened the public response. As reported by thehansindia, former Infosys CFO T V Mohandas Pai utilized the social media platform X, appealing to Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar to rethink the decision, labeling the ban as “anti-citizen.”
Stated by BusinessToday article, approximately 1.5 lakh riders were employed by bike taxi service Rapido in Karnataka. With the cessation of operations, many of these gig workers face uncertainty regarding their income and employment status. Rapido, for instance, reported that 75% of its riders earned around ₹35,000 per month, highlighting the significant financial impact of the ban on these individuals.
Companies like Rapido, Ola, and Uber have expressed concerns over the abrupt nature of the ban and the lack of a clear policy framework. Rapido has emphasized its contributions to the state's economy, including over ₹700 crore (approx.) paid to captains and ₹100 crore in GST in Bengaluru alone. The company has also highlighted the importance of bike taxis in providing affordable transportation options and bridging the first- and last-mile connectivity gaps.
The Karnataka government's stance reflects its commitment to enforcing existing laws and ensuring safety standards. After court order in April 2025, Transport Minister Ramalinga Reddy welcomed the court's decision (to halt the bike taxi services in 6 weeks), noting that the lack of regulations for app-based platforms had raised safety concerns for users. The government was granted three months to develop necessary regulations, aiming to address the legal and safety issues associated with bike taxi services . Read more about court order of Apr 2025 here .
The Karnataka High Court's decision aligns with similar actions in other Indian states. For instance, Delhi has had a ban on bike taxis since 2023, with enforcement varying across regions. In Karnataka's case, the court's directive underscores the necessity for a structured regulatory framework to govern emerging transport services like bike taxis.
The cessation of bike taxi services marks a pivotal moment for urban transportation in Karnataka. While the immediate impact is evident in terms of disrupted services and affected livelihoods, the longer-term implications hinge on the development and implementation of a comprehensive regulatory framework. Stakeholders, including operators, gig workers, and commuters, are awaiting clarity on the future of bike taxis in the state. The government's forthcoming regulations will play a crucial role in determining how these services can operate legally and safely, balancing innovation with public interest.
The ban on bike taxi services in Karnataka serves as a reminder of the challenges in integrating new mobility solutions within existing legal and regulatory structures. As the state navigates the complexities of regulating app-based transport services, it is essential to consider the needs and concerns of all stakeholders involved. The development of a clear and balanced policy will be crucial in shaping the future of urban mobility in Karnataka.
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