​Karnataka HC lifts ban on bike taxis, directs state to grant contract carriage permits

Accordingly, it directed the state government to consider applications of individual bike owners and bike taxi aggregators seeking permits to operate as contract carriages with yellow-coloured number plates. The decision is likely to bring relief to around 6 lakh bike-taxi riders and aggregators who had stopped operations since April 2025.

What was the case?

In 2019, taxi-aggregator companies like Uber India, Rapido and Ola began facing issues in operating bike taxis on their platform, with the state government rejecting licences or refusing to renew them in some instances. Following this, the companies with licences under the Karnataka On-Demand Transport Technology Aggregator Rules 2016 made representations seeking to operate bike taxis on their platform.

They later approached the High Court seeking a directive for the state government to consider their applications seeking registration of motorcycles as transport vehicles.

The single-judge bench, in its order dated April 2, 2025, partly favoured the companies’ claim that motorcycles could be registered as transport vehicles under the provisions of the Motor Vehicles Act, and issued permits to operate as ‘contract carriages’. However, it accepted the state government’s argument that aggregators did not have any crystallised right under the Act to ply the motorcycles as taxis. It held that it could not direct the state government to permit aggregators to operate bike taxis and directed bikes to be stopped from plying until the State framed clear rules.

A division bench heard a challenge to this order and granted the state one month to release a policy regulating bike taxis. The state government then said it took a policy decision not to permit bike taxis, and that only four-wheelers could be onboarded as taxis under the rules.

The state government also listed passenger safety, increased congestion, the availability of public transport, and pollution as some reasons for its policy decision. It said that the motorcyclists could engage themselves as delivery partners under the Gig Workers Act, instead of operating bike-taxis.

How the division bench ruled

The court relied on Central government notifications permitting motorcycles to be used as contract carriages, and Motor Vehicle Aggregator Guidelines, 2025, under which permits licences are issued to aggregators of bike taxi services.​ The court also took note of the recommendations made in the expert committee report furnished to the State government in April 2019, and drew upon the Karnataka Electric Bike Taxi Scheme, 2021 (now withdrawn), which also highlighted the objective of providing last-mile connectivity for further use of public transport, including bike taxis.

The court said, “No informed decision was taken on the part of the State Government to prohibit bike taxi services. The necessity for proscribing the carrying on of generally or on specified occasions or at specified times and seasons, could also be capped.”

Aggregators like Uber and Rapido have welcomed the High Court order, highlighting that bike taxis serve as a vital mobility lifeline, offering people an affordable and convenient way to navigate traffic.

However, autorickshaw unions, who have long opposed bike-taxis, are now considering approaching the Supreme Court to challenge the High Court order. They claim that allowing bike taxis to operate affects their business and would increase traffic congestion.