No bike taxis in Karnataka from Monday as HC refuses to stay single-judge bench order suspending their operations

Justice Rao observed that an interim relief could have been given to aggregators, provided the state government considered drafting a bike taxi policy. “However, in this case, the state government has clearly made a policy decision (of not being interested in framing a bike taxi policy),” he noted.

The aggregators had appealed to the division bench seeking a stay on the single-judge bench’s order. This comes after the high court granted an extension for suspending bike taxi operations by another four weeks from May 14, modifying the single-judge bench order. The deadline will now end on June 15 (Sunday).

The petitioners argued that in the absence of rules by the state, the guidelines issued by the central government under the Motor Vehicles Act should apply. However, the state government countered that the Centre’s guidelines are persuasive and not binding unless adopted by the state.

The absence of an interim relief is likely to hit the operations of bike taxi aggregator Rapido and others in the field, like Ola and Uber. The April 2 order had directed all bike taxi operators to suspend their operations, pending the formation of rules by the state government under Section 93 of the Motor Vehicles Act.

Rapido had previously argued that a blanket ban in the absence of regulation would directly impact the livelihoods of over 6 lakh people across Karnataka. The company had also submitted that it had disbursed over Rs 700 crore to captains and paid over Rs 100 crore in GST contributions across categories in Bengaluru over the last few years.

Rapido had stated that over 75 per cent of bike taxi riders use the platform as their chief source of livelihood, earning an average of Rs 35,000 per month. The company had also said that using two-wheelers as contract carriages had been legal since the inception of the Motor Vehicles Act, 1988, with an advisory to this effect issued by the Centre reiterating this position in law.

Meanwhile, industry body Nasscom (National Association of Software and Service Companies) has submitted a formal representation to Karnataka Transport Minister Ramalinga Reddy, urging immediate intervention on the issue of bike taxi operations in the state.

Highlighting Karnataka’s leadership in technology-driven innovation, Nasscom emphasised the role of tech-enabled mobility solutions like bike taxis in supporting livelihoods, improving last-mile connectivity, and decongesting urban traffic.

“The ecosystem not only offers affordable and efficient mobility but also sustains lakhs of gig workers across the state, including students, women, migrants from other parts of Karnataka, and those recovering from the post-pandemic economic crisis,” Nasscom said.

In its submission, Nasscom has urged the Karnataka government to provide interim relief by extending the June 15 deadline to “prevent large-scale livelihood disruption, while simultaneously initiating a consultative process to develop a balanced regulatory framework for a long-term solution.”