Karnataka High Court upholds ban on bike taxis; services will cease from June 16

Bike-taxi services provided by platforms like Rapido, Uber, and Ola will come to a complete halt in Karnataka starting 16 June, following a Karnataka High Court ruling that upheld a ban on such operations.

The decision came from a division bench of the High Court, comprising Acting Chief Justice V Kameshwar Rao and Justice Sreenivas Harish Kumar, which refused to stay an earlier order passed on 2 April by a single judge. That order had directed bike-taxi operators to suspend services within six weeks unless the state government notified relevant rules under the Motor Vehicles Act. The deadline was extended until 15 June, but during the latest hearing, the court noted that the state government had decided not to frame any such rules.

“Had the state said it was in the process of framing rules and there was some delay, we could have considered staying the order,” the bench observed.

With no regulatory framework in place, the ban will remain in effect until further legal or policy developments. The court has issued notices to the state government and other respondents, and the matter is scheduled to be heard next on 24 June.

In a statement, Rapido expressed disappointment with the court’s decision. “We are deeply disappointed with the Hon’ble High Court’s decision. We will be suspending our services in Karnataka starting June 16,” a spokesperson said. The company called for collaboration with the government to develop a regulatory framework that ensures safety, accessibility, and reliability for both riders and users.

Industry concerns have also been raised over the economic fallout of the move. Nasscom has warned that nearly 1.2 lakh gig workers involved in the bike-taxi segment in Karnataka could be affected if a clear policy is not introduced soon.

Until rules are notified under the Motor Vehicles Act, bike-taxi services will remain suspended across the state.

(With inputs from PTI)