In a significant setback to bike taxi operators, the Karnataka High Court on Friday declined to grant interim relief to platforms such as Rapido, Ola, and Uber. The division bench upheld the earlier single-judge bench order that suspended all bike taxi operations in the state.
The case has now been adjourned to June 24, with all parties instructed to submit their responses by June 20. Until then, the suspension order from April 2 will remain in effect.
Suspension Order Will Continue
A division bench comprising Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar ruled that the state government’s clear decision not to frame a policy on bike taxis prevents the court from offering temporary relief.
“The state government has taken a policy decision not to frame a bike taxi policy. Without such a framework, we cannot grant interim relief,” observed Justice Rao.
The court also noted that while interim relief could have been considered if policy drafting was underway, the state’s refusal to even consider framing rules was a decisive factor.
Arguments from the Aggregators
Petitioners Ola, Uber, and Rapido argued that in the absence of state-level regulations, the central government’s guidelines under the Motor Vehicles Act should govern the matter. These guidelines allow the use of two-wheelers as contract carriages.
The state government, however, countered that these central advisories are not binding unless formally adopted by the state, which Karnataka has not done.
This legal gap has left aggregators and their riders in limbo, unable to legally operate despite national-level support for the model.
Economic Impact and Livelihoods at Stake
Rapido highlighted the widespread socioeconomic consequences of the suspension:
- More than 6 lakh individuals rely on bike taxi services across Karnataka for their primary income
- Around 75 percent of Rapido riders earn their main livelihood through the platform, with an average monthly income of Rs 35,000
- The company has paid over Rs 700 crore to riders and contributed Rs 100 crore in GST in Bengaluru alone
Rapido warned that halting services without introducing clear regulations would severely affect gig workers across the state.
Nasscom’s Representation to the Government
In a formal appeal to Karnataka’s Transport Minister Ramalinga Reddy, Nasscom (National Association of Software and Service Companies) urged the state to extend the June 15 deadline and begin a consultative policy process.
Nasscom emphasized the importance of bike taxis in supporting livelihoods, enabling last-mile connectivity, and decongesting urban roads. It also highlighted how these tech-driven services are vital for students, women, migrants, and people recovering from the pandemic’s economic impact.
“The ecosystem not only offers affordable and efficient mobility but also sustains lakhs of gig workers across the state,” Nasscom said in its submission.
The industry body asked the state to provide immediate interim relief and develop a balanced long-term framework.
What Lies Ahead
With no relief granted, all bike taxi services in Karnataka must cease operations from June 16. This decision places the livelihoods of thousands in jeopardy and raises serious concerns about urban mobility and the future of gig work in the state.
The next hearing on June 24 will be critical in determining whether Karnataka’s stance on bike taxis will shift, or if the ban will continue to disrupt a key sector of the digital economy.
