Karnataka High Court orders bike taxi aggregators to halt operations in state within 6 weeks

IANS April 2, 2025 216 views

The Karnataka High Court has ordered bike taxi services like Rapido, Uber, and Ola to cease operations within six weeks. The bench emphasized the need for proper regulations under the Motor Vehicles Act before permitting such services. This decision overturns the interim relief granted in 2022 that allowed bike taxis to operate temporarily. The ruling deals a significant blow to aggregators, particularly Rapido, which had sought legal recognition for its business model.

"Regulatory clarity is vital before allowing such services to continue" – Karnataka High Court Bench
Bengaluru, April 2: In a major development, the Karnataka High Court on Wednesday ordered bike aggregators, including Rapido bike taxis, to halt their operations in the state within six weeks.

Key Points

1

Court rejects petitions seeking legal recognition for bike taxis

2

Orders halt within 6 weeks citing absence of transport permits

3

Bench refuses to direct state on framing new regulations

4

Rapido faces major setback after 2022 interim relief

Passing the order, a bench, headed by Justice B.M. Shyam Prasad, instructed the state government and the Transport Department to ensure that bike taxi operations cease within six weeks in Karnataka.

"Regulatory clarity is vital before allowing such services to continue," it held.

The court has also asked bike taxi aggregators Rapido, Uber, Ola, and others to halt their services within the stipulated period of 6 weeks.

Justice Prasad, dismissing the petitions, opined that the court cannot give directions to the state to frame regulations and it can't order the state to register non-transport vehicles as transport vehicles.

"The Transport Department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate government regulations are in place," the bench said.

The bench rejected the petitions filed by the Roppen Transportation Services Private Limited, which owns Rapido, ANI Technologies owing Ola, and Uber Technologies owning Uber, seeking to legally recognise bike taxi services by permitting the registration of such vehicles.

The petitioners had also sought the directions to the authorities concerned to implement a legal framework for bike taxis. Rapido had sought directions to the government authorities from interfering with its business.

The court stated that the bike taxi aggregators cannot operate in the state unless the government notifies relevant guidelines under Section 3 of the Motor Vehicles Act, 1988, along with necessary rules.

Earlier, in April 2022, the bench headed by Justice Jyoti Mulimani had given interim relief to the bike taxi aggregators, directing the authorities not to initiate any coercive action against the bike taxi aggregators.

The interim relief has been continued to date, enabling the operations of bike taxis.

The new development is considered a huge setback for bike taxi aggregator app Rapido.

Reader Comments

P
Priya K.
This is such a bummer! Rapido was so convenient for short distances in Bengaluru traffic. Hope they come up with regulations soon so we don't lose this service permanently. 🏍️
R
Rahul S.
Good decision. These bike taxis were operating in a grey area without proper safety regulations. Saw so many riders without proper helmets and documents.
A
Anjali M.
While I understand the need for regulations, I wish the court had given more time for transition. Many drivers depend on this income and 6 weeks is quite sudden.
V
Vikram P.
Interesting move. The court is right that government needs to create proper framework first. But I hope they don't take years to do it like with other transport regulations.
S
Sanjay T.
As someone who used bike taxis daily, this is disappointing. But I do agree they need better safety standards - had some scary rides where drivers were reckless.
N
Neha R.
The court's stance seems fair - can't have businesses operating without clear rules. But the government should have been proactive about creating regulations instead of waiting for court orders.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Karnataka High Court Rapido Uber Ola bike taxi ban Motor Vehicles Act transport regulations
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