Karnataka High Court Orders Ban on Bike Taxis: Legal and Policy Implications
In a landmark judgment, the Karnataka High Court on April 2, 2025, directed bike taxi aggregators like Rapido, Uber, and Ola to wind up their operations in the state within six weeks. Justice B.M. Shyam Prasad, while delivering the judgment, dismissed the aggregators' plea to give judicial sanction to bike taxis and ruled that it was not possible to register motorbikes as transport vehicles under existing laws.
The Legal Framework: What the Court Held
The case was regarding Section 93 of the Motor Vehicles Act, 1988, which governs transport aggregator permits. The court clarified that in the absence of a state regulatory regime, it could not ask the Karnataka government to legalize bike taxis.
This decision arrives in the wake of a January 2024 notice issued by the Union Ministry of Road Transport and Highways, suggesting states grant contract carriage permits to motorcycles. However, Karnataka stuck to its stand that motorbike taxis were banned citing concerns of safety, lack of sufficient insurance cover, and pushing out auto-rickshaws.
Precedents & Policy Decisions
In 2022, Maharashtra banned bike taxis, whereas Delhi allowed electric bike taxis with some guidelines.
Karnataka, in March 2024, withdrew its Electric Bike Taxi Scheme (2021), making its stand clear against two-wheeler taxis.
Bike taxi unions in Bengaluru strongly opposed bike taxis as they were disturbing their livelihoods by offering cheaper fares without being under transport rules.
Constitutional and Business Impact
The order raises pertinent constitutional and economic issues:
1. Article 19(1)(g) – Right to Trade and Business: Is prohibiting of bike taxis a violation of this fundamental right to engage in an occupation to such an extent?
2. Ease of Doing Business: It affects thousands of consumers of bike taxis and gig workers who depend upon online aggregators like Rapido.
3. Consumer Rights & Urban Mobility: With limited public transports in Bengaluru, riders may end up paying higher fare and have fewer transport options.
What's Next?
Bike taxi aggregators must halt operations by mid-May 2025. The Karnataka government is now empowered to implement measures, including fines and impoundments. Legal experts, however, believe that aggregators can appeal the order in the Supreme Court of India, which would establish a precedent for bike taxi regulation nationwide.
Final Thoughts
The Karnataka High Court decision highlights the existing policy and legal issues in regulating new mobility solutions. With states having different approaches, the future of bike taxis in India is uncertain—unless a national policy is made uniform.
Do you support legalizing bike taxis? Let us know in the comment?