Karnataka HC lifts bike taxi ban, clears return of Uber, Rapido services

Court calls blanket prohibition a restraint on trade; firms welcome move

Bike taxi operations are set to make a comeback in Karnataka after the High Court (HC) on Friday lifted the state government’s blanket prohibition calling it an unreasonable restraint on trade.

 

Ride-hailing players such as Uber, Rapido and Ola welcomed the decision, stating that the ruling recognises bike taxis as a legal form of passenger transport in Karnataka.

 

A division Bench comprising Chief Justice Vibhu Bakhru and Justice C M Joshi allowed appeals filed by cab aggregators, setting aside a single judge’s April 2025 order that had halted bike taxi services in the state pending the framing of rules, according to legal news platform Bar and Bench.

   

While quashing the order, the Bench held that the state’s claim that the matter fell within the domain of policy was unsupported, noting that no policy had been articulated to demonstrate that such a ban amounted to a reasonable restriction in the interest of the general public.

 

Uber said the ruling would bring relief to lakhs of drivers who depend on the platform for their livelihood. “Bike taxis serve as a vital mobility lifeline for Indian cities, offering people an affordable and convenient way to navigate traffic. We look forward to engaging with the state on operationalising this mobility ecosystem and serving the mobility needs of our cities across the spectrum,” an Uber spokesperson said.,

 

Calling the decision a win for the people of Karnataka, a Rapido spokesperson said it was not just a legal victory but a milestone moment for urban mobility in the state.

 

“This brings immense joy and dignity to our captains, while also bolstering Karnataka’s contribution towards the vision of a ‘Viksit Bharat’ by fostering smarter and more inclusive mobility,” said the spokesperson, adding that the company remained committed to complying with regulations. “We are excited to be partners in this journey of growth.”

 

Interpreting the Motor Vehicles Act, 1988, the court ruled that motorcycles used as bike taxis qualify as transport vehicles, and that the state cannot deny permits on the ground that motorcycles are not transport vehicles. The court, however, clarified that bike taxis require proper permissions, adding that operators may apply for contract carriage permits to operate motorcycles as bike taxis.

 

“Bike taxis are a simple, efficient solution for congested cities and play a critical role in improving last-mile connectivity and affordability,” an Ola consumer spokesperson said.

 

Over the past year, bike taxi drivers associated with the Namma Bike Taxi Association have repeatedly met legislators and government officials seeking relief from regulatory action against the sector.

 

Drivers operating through ride-hailing platforms said enforcement measures, including the issuance of challans, disrupted their livelihoods after legal protection for bike taxi services was withdrawn.

 

Many, including daily-wage earners, delivery workers and students, argued that the restrictions eliminated their primary source of income, affecting thousands of gig workers across the state.

 

The association had urged the government to introduce clear rules on licensing, insurance and safety, warning that a blanket shutdown had also reduced affordable transport options in underserved areas.