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HomeNewsBusinessStartupAfter two months, Rapido and Uber resume bike taxi services in Karnataka

After two months, Rapido and Uber resume bike taxi services in Karnataka

Bike taxi services were banned in Karnataka since June 16. Moneycontrol on August 21 found that Rapido and Uber were showing bike taxi options and accepting bookings.

August 21, 2025 / 09:07 IST
Bike Taxi

Bike Taxi

After two months and following a ban, ride-hailing firms Rapido and Uber resumed bike taxi services in Karnataka on August 21.

Moneycontrol found that both platforms were offering bike taxi options and accepting bookings, though Ola is yet to resume the service.

Both aggregators were not immediately available for comment.

Transport minister Ramalinga Reddy told Moneycontrol: "The high court has given us a month to decide whether to frame a bike taxi policy. But the court has not permitted them to resume services. We will bring this to the notice of the court. A decision on enforcement will be taken after discussions with transport department officials."

Also, readKarnataka bike taxi ban: 'Give it a serious thought, there are lives at stake,' HC tells govt

Rapido

Karnataka’s bike taxi ban came into effect on June 16, forcing many officegoers who relied on the service to switch to personal vehicles, while auto rickshaw drivers hiked fares amid surging demand.

Uber

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

The resumption of bike taxi services comes a day after the Karnataka High Court pulled up the state government for its blanket ban, questioning why the mode of transport could not be regulated instead of prohibited. A division bench of Chief Justice Vibhu Bakhru and Justice CM Joshi, hearing appeals filed by Ola, Uber and Rapido, on August 20 observed: “Give it a serious thought, there are lives at stake here. Every trade is permissible unless regulated. This (bike taxi) is not res extra commercium.”

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

While the Centre’s Motor Vehicle Aggregator Guidelines, 2025 - issued on July 1 - permit the use of non-transport (private) motorcycles for passenger rides, subject to state government approval, Karnataka is not too keen to allow bike taxis due to opposition from auto and taxi unions.

In fact, Karnataka was the first state to launch an Electric Bike Taxi Policy in 2021. However, under pressure from autorickshaw drivers’ unions, the government withdrew the policy in March 2024.

Also, readRelief for Rapido, other bike taxi operators as Centre’s aggregator guidelines 2025 permit shared mobility; states to take final call

Adi Narayan, president of the Bike Taxi Welfare Association, said: "The Karnataka High Court's progressive stance marks a critical moment in recognizing bike taxis as an integral part of the urban mobility ecosystem. This development calls upon the state government to engage constructively and work towards a robust regulatory framework, rather than resorting to an outright ban."

Also, readStranded by bike taxi ban in Bengaluru: A first-person account

He added: "The Bike Taxi Welfare Association applauds the court's balanced and thoughtful observations, and reiterates its commitment to collaborating with the government and stakeholders to ensure that bike taxi services operate safely, legally, and sustainably-benefiting both commuters and operators alike."

Also, readWhy Karnataka govt’s flawed decisions are adding to Bengaluru’s traffic crisis

The division bench said that it would not interfere in policy but would examine whether the government’s decision was arbitrary or mala fide. “We don’t have to be satisfied with the policy, only whether it is arbitrary,” the court noted, posting the matter for September 22.

Also, readKarnataka govt in a fix over framing rules for bike taxis

The judges said the state must give “serious thought” to the issue before deciding on the legality of bike taxis. The court observed that bike taxis are legally permitted in 13 states, calling it a recognised trade protected under Article 19(1)(g), and orally asked the Advocate General to ensure no coercive action is taken against operators.

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

Bike taxi services were banned after the Karnataka High Court on June 13 refused to stay a single-judge order directing that operations be halted unless the state framed rules under the Motor Vehicles Act. Justice B Shyam Prasad, in an April 2 order, had directed that bike taxi services in Karnataka be stopped within six weeks - a deadline later extended to June 15. Consequently, services were suspended across the state from June 16.

Also, readKarnataka bike taxi ban: Why innovation, government policies collide at India’s start-up hub

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Christin Mathew Philip is an Assistant editor at moneycontrol.com. Based in Bengaluru, he writes on mobility, infrastructure and start-ups. He is a Ramnath Goenka excellence in journalism awardee. You can find him on Twitter here: twitter.com/ChristinMP_
Bhavya Dilipkumar
first published: Aug 21, 2025 09:06 am

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