Karnataka Halts Bike Taxi Services from June 16, Affecting Over 6 Lakh Livelihoods
Starting June 16, 2025, bike taxi services offered by Ola, Uber, and Rapido will be suspended across Karnataka. This decision follows a ruling from the Karnataka High Court, which upheld an earlier order to halt such services until the state government establishes clear regulations under the Motor Vehicles Act.
The division bench, led by Acting Chief Justice V. Kameswar Rao and Justice Sreenivas Harish Kumar, denied interim relief to the aggregators, stating that the state had made it clear that it would not draft rules to permit bike taxis. The court has scheduled the next hearing for June 24, 2025, and has directed the parties involved to submit their responses by June 20.
This ruling comes in response to an order issued on April 2, 2025, by Justice B. Shyam Prasad, which mandated the cessation of all bike taxi operations within six weeks. This deadline was subsequently extended to June 15. The court cited a 2019 expert committee report that raised safety and traffic concerns, recommending against allowing bike taxis without a robust regulatory framework.
Rapido, one of the companies affected by the ban, stated that it would impact over 600,000 riders, nearly 75% of whom rely on the platform as their primary source of income, earning around ₹35,000 per month. The company also claimed to have disbursed over ₹700 crore to riders and paid ₹100 crore in GST in Bengaluru alone.
Despite previous petitions from these companies seeking permission to register two-wheelers as transport vehicles, the state government has maintained its firm stance. Transport Secretary N.V. Prasad confirmed that no new regulations are being drafted and that no stakeholder consultations have taken place. Commissioner Yogeesh A.M. reiterated that personal two-wheelers cannot operate as bike taxis without a proper policy in place.
With no signs of regulatory support, this ban poses a significant threat to gig economy workers and may exacerbate commuting difficulties in urban areas.
