Karnataka panel backs two-wheelers for e-commerce, rejects bike taxis as unsafe and illegal

“Goods can be transported by walking, bicycles or private two-wheelers, keeping delivery work within the realm of general commerce”, it states. The committee states that this sector has no direct overlap with passenger-carrying services.

The committee insists that Karnataka’s ban on bike taxis should continue. It argues that these services worsen congestion, environmental and legal issues while exposing riders and passengers to financial and safety risks due to the absence of insurance and valid permits. Instead of creating a new regulatory framework for bike taxis, the panel recommends strict enforcement of existing laws while facilitating the lawful absorption of riders into gig-economy roles in deliveries and services under the Karnataka Platform-Based Gig Workers Act.

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It may be recalled that, on November 15, Karnataka told the high court that motorcycles cannot be treated as passenger vehicles while defending its ban on bike taxis. The court questioned this stance in light of the government’s earlier electric vehicle (EV) policy that permitted e-bike taxis. The state said the policy has been withdrawn and reiterated that motorcycles cannot be used for hire or reward. The court has listed the matter for further hearing on November 24.

Legal and regulatory issues

The report said bike taxis operate in a completely different legal universe. Carrying passengers for hire on a motorised two-wheeler is considered a form of contract carriage under the Motor Vehicles Act. This triggers regulatory requirements, including commercial registration, valid transport permits, passenger insurance, and an aggregator licence under Section 93. A private motorcycle with a white number plate is therefore not legally permitted to carry paying passengers. The committee describes bike taxis as “transport services masquerading as gig work” to evade regulatory scrutiny.

Also, read: Karnataka High Court: No order permitting bike taxis, state free to act

Legally, the report notes, bike taxis operate in a vacuum. Section 66(1) of the Motor Vehicles Act prohibits vehicles from carrying passengers for hire without a valid permit, and Karnataka has never notified motorcycles as contract carriages.

Central rules require commercial vehicles to display yellow number plates, but most bike taxis on Rapido, Ola and Uber run on private white plates. The Karnataka High Court, in an April 2025 ruling, reinforced this legal position and ordered aggregators to halt operations until a regulatory framework is created. The panel also notes that the Insurance Regulatory and Development Authority of India (IRDAI) has not approved any insurance product for privately registered bikes carrying passengers, leaving riders and passengers without legal protection in case of accidents.

Congestion and traffic concerns

The committee links the bike-taxi issue to Bengaluru’s severe congestion and explosive growth of private vehicles. Between 2015 and 2025, the city’s population grew by about 42 percent, while two-wheelers nearly doubled, cars rose by almost 80 percent and taxis by over 100 percent. BMTC buses, in contrast, grew by only 14 percent, even though they carry a significant share of commuters, the report said.

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The report states that this surge in private vehicles has contributed to slow traffic, high pollution and stressed road infrastructure. Unchecked two-wheeler growth, including illegal bike taxis, worsens congestion, slows junction clearance, increases emissions from idling vehicles and complicates enforcement of traffic rules. In several hotspots, nearly 70 percent of vehicles are two-wheelers, making basic enforcement of lane discipline and helmet usage more difficult, it said.

Also read: A week after bike taxi ban, Bengaluru sees spike in traffic jams, costlier auto rides & angry gig workers

Inefficiency and cost concerns

The committee rules out the notion that bike taxis improve mobility. Transport-efficiency studies cited in the report show that buses are far more space-efficient, with a much lower passenger car unit per person than bike taxis. A single bus can carry 30-40 people while occupying the equivalent road space of a few cars, whereas moving the same number of passengers on bike taxis requires 30 separate motorcycles, each adding to congestion.

The perception that bike taxis are cheaper than buses is also questioned. A short 2-km ride on a bike taxi can cost around Rs 48, rising with surge pricing, while BMTC fares start at Rs 6 and even a full-route journey costs around Rs 32. Combined with higher capacity and efficiency, buses remain the most cost-effective and environmentally responsible mode of urban transport, it said.

Also, read: Karnataka bike taxi ban: Users ride as ‘parcels’, drivers switch to deliveries, last-mile fares spike on day one

Social and educational risks

Beyond legal and traffic concerns, the report states the impact on students. Around 18 percent of bike-taxi riders are college students, many from rural or economically stressed backgrounds. Motorcycles purchased by parents for commuting are repurposed for commercial use, encouraging students to skip classes and work long hours. The committee calls this a “social atrocity” that can undermine both academic performance and long-term career prospects, creating long-term harm for individuals and the state’s human-capital development.

Public transport as the solution

The committee urges Karnataka to invest further in public and sustainable transport instead of relying on fragmented, high-risk services like bike taxis. The state is procuring thousands of electric buses for BMTC under the PM e-Drive scheme and working to improve first- and last-mile connectivity through an expanded Metro network, feeder buses, walking and cycling infrastructure. The report warns that allowing large-scale bike-taxi operations could push Bengaluru closer to unmanageable congestion, while prioritising buses and metro offers a more sustainable and liveable future.

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

Gig workers’ welfare without legalising bike taxis

To address concerns over livelihoods, the report refers to the Karnataka Platform-Based Gig Workers Act, 2025, which establishes a Gig Workers Welfare Board and a dedicated social-security fund for lawful gig-economy work such as deliveries and logistics. However, the panel clarifies that the law does not legalise bike taxis. The Act cannot override the Motor Vehicles Act or validate operations that fundamentally violate transport statutes. Its purpose is to strengthen welfare for legal gig workers, not shield illegal transport services.

Also, read: Bike taxi row: Rapido turns interim facilitator of two-wheeler mobility in Karnataka, won't earn profit