Industry body IAMAI urges Karnataka govt to formulate guidelines for bike taxis amid HC order suspending services

It noted, “Bike taxis have become an integral part of the public transportation ecosystem, particularly in Tier-1 cities like Bengaluru. With increasing traffic congestion and limited public transport options, bike taxis offer a convenient and cost-effective solution for lakhs of daily commuters and similarly provide livelihood opportunities for gig workers across the State.”

IAMAI urged the government to form a joint committee “comprising officials from the State Transport Department, industry representatives, and gig-worker/bike taxi unions to provide inputs for the formulation of bike taxi guidelines, and allow temporary permits for safety compliant aggregators during the policy formulation period to facilitate continued bike taxi operations.”

The industry body also sought a balanced regulatory framework to ensure safe and sustainable bike taxi services while furthering urban mobility. “The industry is willing to coordinate and collaborate with the State Government in furtherance of the formulation of guidelines for bike taxis in the State of Karnataka. In view of the above, we request an urgent meeting to discuss collaborative next steps,” the letter read.

The Karnataka High Court ruled on April 2 that bike taxi aggregators cannot operate in the state unless the government notifies relevant guidelines under section 93 of the Motor Vehicles Act, 1988, along with the necessary rules. This came as a huge setback to bike taxi aggregator giant Rapido and other players like Uber and Ola. The single-bench ordered the suspension of bike taxi operations within six weeks in the state.

Criticising IAMAI’s letter, urban mobility expert Satya Arikutharam said, “This is a barely camouflaged policy lobbying attempt by the industry. The court order has not directed the state government to formulate bike taxi regulations. Instead, it has given six weeks for the aggregators to wind up bike taxi operations.”

“Bike taxi riders should be able to find alternative employment in other states where bike taxis are allowed or in the buoyant delivery and logistics sector. I call upon the state government to publicly announce the date from which bike taxis will cease operations in Karnataka, and strengthen regulatory oversight of autorickshaws and taxis,” he added.

While the high court issued a stinging rebuke to aggregator apps, Justice B M Shyam Prasad also observed that the Motor Vehicles (MV) Act, 1988, permits motorcycles to be registered as transport vehicles and issued contract carriage permits, dismissing the state’s claim that their legal definition precludes such use. The judge also noted that despite lacking a “crystallized right” under the law, these aggregators had exploited interim orders since 2021 to run bike-taxis, a practice the state argued flouted the “no permit, no plying” principle upheld by the Supreme Court.

Turning to the government, the judge issued a pointed warning against complacency. “The State Government must be alive to the emerging circumstances and the evolving local conditions, and it cannot shut itself to the possibilities of the emerging trends and technologies,” he stated, urging adaptability in a rapidly changing transport landscape. Quoting a famous adage, the judge added, “An institution which refuses change becomes the architect of decay.”