Karnataka govt in a fix over framing rules for bike taxis

Bike Taxi

"The state government must remain responsive to emerging trends and evolving local conditions. It cannot shut itself off from the possibilities presented by new technologies," the Karnataka High Court has observed.

On April 2, Justice BM Shyam Prasad ordered bike taxi services to be stopped within six weeks (by mid-May) and directed the state government to frame a legal framework for bike taxis within three months.

Also, read: Karnataka High Court orders suspension of bike taxis within 6 weeks

“If the circumstances justify a new approach, the state government should not lag behind… This court, in this context, must muse—as it is famously said—that an institution which refuses change becomes the architect of decay,” the court said.

However, the transport department finds itself in a fix. Facing strong opposition from auto-rickshaw unions, the department had withdrawn the Electric Bike Taxi Scheme—launched in 2021—in March 2024.

Also, read: Bike taxi ban & bus-metro fare hikes: A double whammy for Bengaluru's citizens

A senior transport department official told Moneycontrol: “We are caught between the devil and the deep sea. If we frame rules, the auto-rickshaw unions will protest. If we don’t, users will express their anger on social media and tarnish the image of the startup capital. However, we will enforce the high court's order to stop bike taxi services and then hold a stakeholders’ meeting to develop a proper framework."

Karnataka transport minister Ramalinga Reddy told Moneycontrol: “The high court has directed us to stop bike taxis within six weeks, and we have three months to frame rules. We need to enforce the ban first and then make a decision. We haven’t yet decided whether to revive the e-bike taxi policy.”

He added that bike taxis must operate within the ambit of the law. “Two-wheelers are meant for personal use, not commercial. There are 2.7 lakh auto-rickshaws, and their earnings have declined due to bike taxis. This is one reason they demand excess fare or refuse to ply. Be it bike taxis, lorries, buses, or other commercial vehicles—they all must follow rules. Even the high court was convinced that operating bike taxis is illegal, hence the ban.”

Also, read: IAMAI urges Karnataka government to consult industry on bike taxi policy

Internet and Mobile Association of India (IAMAI), which represents over 600 Indian and multinational digital service companies, has urged the state government to form a joint committee with transport officials, industry representatives, and gig worker unions to draft bike taxi guidelines. IAMAI has also requested that temporary permits be issued to bike taxi aggregators complying safety standards during the policy drafting process.

Auto-rickshaw unions strongly oppose the move. Raghu Narayan Gowda, president of the Peace Auto Union, said: “When Karnataka launched the e-bike taxi policy, none of the aggregators followed it. They continued to run white-board two-wheelers as bike taxis. Now, bike taxi aggregators are asking the government to frame guidelines and issue temporary permits before the ban takes effect. Transport department may follow Maharashtra’s model of selective permits, but we oppose any bike taxis in the city."

In 2016, the Centre recommended promoting bike-sharing and e-rickshaws for last-mile connectivity and advised states to frame rules for tech-based mobility services. Karnataka formed an expert committee in 2018, which submitted a report in 2019 opposing bike taxis in Bengaluru, citing concerns over congestion, safety, emissions, and inefficiency. Despite launching the Electric Bike Taxi Scheme in 2021, the state withdrew it in March 2024, citing concerns over women’s safety and conflicts with auto and taxi unions.

Also, read: After protests by Bengaluru auto unions, Karnataka withdraws Electric Bike Taxi Scheme