In a major blow to bike taxi aggregators, the Karnataka High Court on Friday refused to grant interim relief to companies like Rapido, Ola, and Uber. The court upheld its earlier order suspending bike taxi operations in the state, impacting thousands of gig workers and commuters.
What Did the High Court Say?
A division bench of Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar declined to stay the April 2 order by the single-judge bench of Justice Shyam Prasad. This means bike taxi services will remain suspended in Karnataka until further hearings.
- Next hearing: June 24
- Deadline for submissions: June 20
The court noted that while interim relief could have been granted, the Karnataka government has shown no interest in drafting a formal bike taxi policy.
Why Was the Ban Imposed?
The ban on bike taxis was imposed citing the lack of a regulatory framework in Karnataka for two-wheeler aggregators under Section 93 of the Motor Vehicles Act.
- Bike taxi ban order date: April 2, 2025
- Extension granted till: June 15, 2025
Although the Centre has issued guidelines supporting bike taxis, the state argued that they are advisory and not binding unless formally adopted.
Rapido’s Argument: Lakhs of Livelihoods at Risk
Leading aggregator Rapido has argued that the ban would adversely affect over 6 lakh riders who depend on bike taxi services for their livelihood.
Key Stats Shared by Rapido:
- ₹700 crore disbursed to captains in Bengaluru alone
- ₹100+ crore paid in GST
- Average earning of riders: ₹35,000/month
- 75% of riders use bike taxi income as their main source of livelihood
Tech Industry Joins the Protest: Nasscom Backs Bike Taxis
The ban has triggered reactions from tech bodies as well. Nasscom (National Association of Software and Service Companies) has formally urged the Karnataka government to reconsider the ban.
“Bike taxis are vital for affordable urban mobility, last-mile connectivity, and support lakhs of gig workers, including students, women, and pandemic-hit families,” Nasscom said in its letter to Transport Minister Ramalinga Reddy.
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