The Karnataka High Court has ordered bike taxi operators, including Rapido, to cease operations across the state within six weeks. The ruling, issued on Wednesday by Justice B. Shyam Prasad, deals a significant blow to companies in the bike taxi sector.
The decision follows the court’s dismissal of petitions filed by Rapido’s parent company, Ropeen Transportation Services Private Limited, along with major ride-hailing firms like Uber and Ola (ANI Technologies), according to legal news portal Bar and Bench. The petitioners had sought legal recognition for bike taxis and requested permission to register Internal Combustion Engine (ICE) two-wheelers as transport vehicles.
Additionally, the companies had urged the court to establish a clear regulatory framework for bike taxi services, arguing that their operations deserved legal protection. Rapido, which was already operating bike taxis in Karnataka, had also requested an injunction to stop authorities from interfering with its services.
Temporary Relief for Firms Comes to an End
The legal dispute dates back to April 2022, when a separate bench headed by Justice Jyoti Mulimani granted interim relief to the petitioners. That order had temporarily barred authorities from taking coercive action, enabling Rapido and other operators to continue their services. However, with the latest ruling, that reprieve has officially ended.
Justice B. Shyam Prasad, who began hearing the case in 2023, ruled that the court cannot mandate the state government to create new regulations as sought by the petitioners. He further clarified that the state cannot be compelled to register non-transport vehicles, such as private two-wheelers, as transport vehicles.
Why Bike Taxis Have Been Banned in Karnataka?
Despite offering an affordable and fast mode of transport, bike taxis have been banned in Karnataka due to regulatory and safety concerns. In 2024, the Central government clarified that motorcycles fall under the Motor Vehicles Act and can be recognized as transport vehicles under Section 2(28), as long as they have fewer than four wheels and an engine capacity above 25cc. This positioned bike taxis within the legal framework nationally.
However, the Karnataka government took a different stance in court, arguing that the use of bikes with white (private) license plates for commercial purposes violates existing regulations. It also raised concerns over the lack of safety standards for bike taxi operations.
The issue isn’t isolated to Karnataka. Companies like Rapido are facing similar legal challenges in other states, including Maharashtra, Delhi, and Assam, largely due to the absence of commercial licenses or permits. Notably, Maharashtra’s cabinet recently approved bike taxi operations under specific conditions, signaling a possible path forward for regulated services.
What Rapido Said
According to Moneycontrol, Rapido expressed concern for the livelihoods of its bike taxi partners following the Karnataka High Court’s decision. In a statement, the company acknowledged the court’s directive to halt bike taxi operations within six weeks and noted that the transport department has been instructed not to take any adverse action during this interim period.
“Karnataka-born Rapido is concerned about the welfare of the lakhs of bike taxi captains onboarded on the platform and will evaluate and pursue appropriate legal remedies once the detailed order is made available,” a Rapido spokesperson said.
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