In a recent ruling, the Karnataka High Court has directed bike taxi aggregators like Rapido, Ola, and Uber to halt their services within six weeks, unless the state government drafts and implements clear guidelines for their operations. This decision comes after a prolonged standoff between these aggregators and the state government, which has been seeking regulatory control over the growing bike taxi industry. The court’s ruling is a significant blow to the services, as it requires the government to notify the relevant guidelines under the Motor Vehicles Act, 1988, for bike taxis to operate legally.
The court’s ruling comes in the wake of the Karnataka government’s repeated claims that bike taxis pose safety risks, particularly for women, and operate without the necessary legal backing. Transport Minister Ramalinga Reddy emphasized that the government would seek legal advice before proceeding with any regulations. The government had earlier insisted that the aggregators must register with the government and follow proper guidelines, which they failed to do, opting instead to challenge the government’s authority in court.
The court’s judgment also highlighted the findings of a 2019 expert committee report, which raised concerns about the safety and traffic implications of bike taxis. The government has been firm in its stance that bike taxis are unsafe, and the court has underscored the need for a comprehensive regulatory framework before allowing these services to operate. The transport department has been instructed to submit a detailed plan within three months.
This ruling intensifies the ongoing conflict between bike taxi operators and traditional transport unions, who have long argued that the aggregators are taking business away from auto-rickshaws and traditional taxis. In 2024, the Federation of Karnataka State Private Transport Associations called for a strike demanding a ban on bike taxis, claiming that they operate illegally and that their drivers face unfair competition. Auto unions also expressed concerns about the hefty commission taken by aggregators, which they argued leaves drivers struggling.
The issue has been further complicated by the government’s withdrawal of the Electric Bike Taxi Scheme in March 2024 due to safety concerns and misuse of private vehicles. This decision was followed by a crackdown on illegal bike taxis in Bengaluru, with the transport department impounding over 238 unlicensed vehicles.
Despite the crackdown, bike taxi operators have found support in previous court rulings that shielded them from government action. However, with the latest court decision, these operators now face the imminent challenge of complying with new government regulations or halting their services altogether. The battle between the government, transport unions, and bike taxi aggregators is far from over.
