The Karnataka High Court has not prohibited bike taxis; however, they are expected to disappear from the streets of Bengaluru

Earlier this month, the Karnataka High Court determined that aggregators like Rapido, Ola, and Uber must cease their bike taxi services in the state until appropriate rules and regulations are established under the Motor Vehicles Act of 1988. The court has provided these companies with a six-week timeframe to discontinue their operations.

Taxi and auto unions in Karnataka, which have consistently opposed the presence of lower-cost bike taxis in the region, have expressed their approval of this recent ruling. Conversely, regular users of bike taxi services are concerned that their commuting expenses will significantly increase.

What prompted the High Court's decision? Have bike taxis encountered similar challenges in other states?

Operating within a legal gray area, Rapido initiated its bike taxi services in Karnataka around 2016, taking advantage of the demand for economical and swift transportation. However, from the beginning, these services clashed with the state Transport Department's regulations, which stipulate that two-wheelers with white number plates (designated for private use) cannot be utilized for commercial activities according to the Karnataka Motor Vehicle Rules of 1989. Influenced by strong auto and cab unions, the government has repeatedly enforced restrictions on bike taxi operations.

In February 2019, over 200 bikes were confiscated, followed by an additional 120 in January 2022. In 2019, the government imposed a six-month suspension on Ola for providing bike services, although this was lifted just two days later. The launch of the Karnataka Electric Bike Taxi scheme in 2021 allowed for some degree of regulation (limited to electric vehicles).

However, this initiative was also rescinded by a government order in 2024, which stated that e-bike services contravened the Motor Vehicles Act and posed safety risks for women. Until now, bike taxi services in Karnataka have continued to operate based on a 2022 interim order from the Karnataka High Court, which prohibited the government from taking any punitive measures against bike taxis until further notice.

Bike taxi services in Karnataka have continued to operate based on the interim order issued by the Karnataka High Court in 2022, which prohibited the government from taking any punitive measures against bike taxis until further notice. The interim order was a result of multiple petitions filed by Uber, ANI Technologies (the parent company of Ola), and Roppen Transportation (the parent company of Rapido). The court delivered its ruling on this matter on April 2.

Central to the petitions was a request to allow the registration of two-wheelers as 'transport vehicles.' The court noted that such registration is not forbidden under the Motor Vehicles Act (MVA), which permits two-wheelers to receive permits to function as 'contract carriages.'

However, the High Court referenced a 2023 Supreme Court ruling in the case of Roppen Transportation Services Private Limited v Union of India and Others, which addressed the operation of two-wheelers as bike taxis in Maharashtra, stating that the authority to grant licenses to aggregators lies with the respective State Governments.

Consequently, the Karnataka High Court indicated that the state government must establish guidelines under Section 93 and rules under Section 96 of the MVA, without which aggregators would be unable to provide bike taxi services. Importantly, the court clarified that it could not mandate the Transport Department to register motorcycles as commercial vehicles.

According to Section 93(1)(iii) of the MVA, aggregators are prohibited from operating without a license that adheres to the conditions set by the state government, while Section 96 pertains to the state's authority to formulate rules under the MVA. The High Court's ruling effectively places the responsibility on the state government, making the decision to permit or deny bike taxis a political issue that the Karnataka government must navigate, considering the interests of auto and cab unions