SUMMARY
- Rapido and Ola have halted bike taxi services in Karnataka following a High Court order.
- The ban stems from the lack of regulatory guidelines under the Motor Vehicles Act.
- Over 1 lakh gig workers and countless commuters are affected.
- A new legal framework is expected within three months to potentially revive services.
In a major development for the urban mobility sector, bike taxi operators Rapido and Ola have halted their services across Karnataka following a directive from the Karnataka High Court. The decision marks a significant disruption for daily commuters and gig workers who rely on these services for transportation and income.
Why the Suspension?
The suspension comes after the High Court reaffirmed its earlier ruling that prohibits bike taxis from operating in the state without a proper legal framework. The court had granted operators a six-week window, ending on June 15, 2025, to cease services until official state guidelines are established under the Motor Vehicles Act, Section 93. The government has been instructed to come up with a regulatory framework within the next three months.
The main concern raised by the court is the lack of clarity on licensing, safety, insurance, and pollution compliance for two-wheelers being used for commercial purposes. This regulatory vacuum has led the court to push for structured policy development before any such services can legally continue.
Rapido Complies, Ola Under Scrutiny
Rapido promptly suspended its operations starting June 16, displaying in-app notifications to users across Karnataka. However, Ola and Uber have reportedly continued offering bike taxi rides in some parts of Bengaluru, sparking concerns about non-compliance.
Impact on Gig Workers and Commuters
The decision has affected over 1 lakh bike taxi riders who now face uncertainty regarding their livelihoods. For commuters, the absence of affordable bike taxis has pushed many to rely on autos and cabs, often at higher prices.
Organizations such as the Namma Bike Taxi Association and NASSCOM have appealed to the government to speed up the creation of a clear policy. They warn that continued delays could result in job losses and increased pressure on public transport systems.
What’s Next?
The Karnataka government is expected to draft a comprehensive bike taxi policy within the next three months. Meanwhile, Rapido and other platforms are in dialogue with policymakers, hoping to resume services under the new regulatory norms once they are in place.