Big Blow to Rapido, Ola, Uber: Karnataka HC Orders Immediate Suspension of Bike Taxis Until Further Notice

Bengaluru: In a major setback for bike taxi aggregator Rapido, the Karnataka High Court ruled on Wednesday that bike taxi services cannot operate in the state unless the government issues relevant guidelines under Section 3 of the Motor Vehicles Act, 1988. The court has directed the state government and the transport department to ensure that all such services cease within six weeks.

Court Mandates Suspension of Operations

Justice B M Shyam Prasad, delivering the verdict, stated that Rapido, Ola, Uber, and other bike taxi aggregators must halt their operations within the stipulated period. Additionally, the Karnataka government has been given three months to frame the necessary rules and regulations for the sector.

Reading out the order, Justice Prasad clarified that the transport department cannot register motorcycles as transport vehicles or issue contract carriage permits for such services unless appropriate government regulations are in place.

Regulatory Gaps and Safety Concerns

During the hearing, Senior Advocate Arun Kumar, representing one of the parties, pointed out that Ola had only started offering bike taxi services in April 2024. However, the court maintained that all petitioners must comply with the order.

The judgment also referenced a 2019 expert committee report that examined the impact of bike taxis on traffic congestion and safety concerns. The court emphasized that regulatory clarity is essential before allowing such services to continue.

Government Given Three Months to Frame Rules

The Karnataka government now has three months to draft new guidelines for bike taxi services in the state. Until then, all operations must cease.

Justice Prasad concluded by stating that resisting change could lead to stagnation, quoting the adage, “A person who denies change becomes the architect of decay.”