In a major blow to bike taxi services, the Karnataka High Court ruled that aggregators like Rapido, Uber, and Ola cannot operate in the state unless the government establishes specific guidelines under the Motor Vehicles Act, 1988.

The court directed the state government and transport department to ensure that all bike taxi operations stop within six weeks. The government has been given three months to frame necessary regulations for bike taxis.
Justice B M Shyam Prasad clarified that the transport department cannot register motorcycles as transport vehicles or issue permits for commercial bike taxi services until proper guidelines are in place.
State Government’s Response
State Transport Minister Ramalinga Reddy stated that authorities will review the court’s order before taking action. “The court has granted six weeks for bike taxi aggregators to cease operations and also given time for the government to draft regulations. We will work on it accordingly,” he said.
A Rapido spokesperson expressed concern for the thousands of bike taxi riders relying on the platform for income. The company plans to explore legal options once the detailed court order is available.
How the Legal Battle Unfolded
Rapido entered Karnataka’s market in 2016, catering to the demand for affordable transport. However, the state Transport Department opposed bike taxis, arguing that private vehicles cannot be used for commercial purposes. This led to frequent crackdowns, including bike seizures in 2019 and 2022, following protests from autorickshaw unions.
To address legal hurdles, Karnataka introduced the Electric Bike Taxi Scheme in 2021, permitting only electric two-wheelers for commercial use. However, in March 2024, the scheme was revoked due to concerns over non-compliance and passenger safety.
What Lies Ahead for Bike Taxis?
Beyond Karnataka, Rapido faces similar legal challenges in Maharashtra, Delhi, and Assam, where bike taxi services have been banned due to licensing issues. Experts argue that bike taxis lack safety measures and suggest that shared autorickshaw services be promoted as an alternative.
While autorickshaw unions welcome the ruling, concerns remain about passenger convenience. As bike taxis prepare for a legal battle, the industry awaits the government’s next move in shaping urban transport policies.