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

On Monday morning, Raghu K, a database management trainee in HSR Layout, found himself stranded outside his apartment gate, endlessly refreshing his ride-hailing app. His usual Rs 50-90 Rapido bike taxi ride to the office had vanished.

No bikes were available. His only options? A Rs 300 cab or a painfully long bus ride to Koramangala.

“I’ve always relied on bike taxis to beat traffic and save money. Today, I waited 20 minutes before I gave up. It’s not just about cost, which is also a significant reason, but it’s about time in a city like Bengaluru,” he said, frustrated.

Across the city, especially in traffic-heavy areas like Koramangala, HSR Layout and Electronic City, many like Raghu faced the same inconvenience.

Commuters and riders say the ban has hit hardest in key tech and commercial hubs—Koramangala, HSR Layout, Electronic City and Whitefield, where tech parks and startup offices dominate, and fast, affordable transport is crucial.

“These are the areas where the demand was the highest. Banning bike taxis here is like removing lifeboats from a sinking ship,” said a Rapido rider.

“I stay fairly close to work, it used to cost around Rs 44-46 to reach the restaurant I work for. My daily income is around Rs 200, now should I spend Rs 100 on an auto? It doesn’t make sense,” said another bike-taxi regular named Anupam, who works at a ‘thindi’ or a restaurant in Bengaluru.

For users, especially officegoers and students, bike taxis were a lifesaver. They sliced through Bengaluru’s notorious traffic and provided cheaper options compared to cabs and autos.

“I used to take a bike taxi for first- and last-mile connectivity to the metro station. Now I’m forced to walk longer or shell out more money for an auto,” said Ananya Rao, a student in Koramangala.

That way of life seems to be over—at least at first glance. Platforms like Rapido, Ola and Uber have been sent notices to cease bike taxi operations immediately. The ban on bike taxis came into effect on June 15 after the Karnataka High Court refused to stay an order that directed aggregators to halt operations till the time the state framed rules to regulate the service.

However, a spot check by Moneycontrol revealed that while Rapido had removed its bike taxi option in Karnataka from its app, it had replaced it with a “bike parcel” service.

Also read: Karnataka bike taxi ban kicks in; Rapido says it’s pausing operations

The app also notified users with a message: “Starting June 16, 2025, our bike taxi services in Karnataka will be paused in compliance with recent High Court orders.”

Uber, too, has withdrawn its ‘Moto’ bike taxi option and replaced it with a ‘Moto Parcel’ icon.

“Uber has taken the difficult decision to suspend bike taxi operations in Karnataka from June 16 following an order from the Hon’ble High Court. This will negatively impact the many thousands of riders who rely on bike taxis for their daily mobility needs, as well as the many thousands of drivers who rely on the service for their livelihood," Uber Spokesperson said in a statement.

"We will continue engaging with the Government of Karnataka to help shape a progressive policy framework that enables safe, accessible, and affordable mobility options for everyone," Uber Spokesperson added.

Ola showed bike bookings on its app till 1 pm, but a Moneycontrol check revealed that not many riders are actually available on the platform. However, the app has been updated and the 'Bike' option has been removed.

This gap has led to a workaround: several Rapido and Uber riders are now accepting parcel bookings but are ferrying passengers instead.

Moneycontrol independently verified this with multiple captains—as the company designates its riders—many of whom confirmed they are still offering bike taxi services under the guise of parcel deliveries.

Uber Moto Parcel Available to Pick up Rides

Captains go with parcels

"If you book me as a parcel, I can still drop you," said Ramesh (name changed), a Rapido captain Moneycontrol spoke to during a break near Koramangala.

Moneycontrol verified this workaround with multiple riders across the city, who confirmed they are still offering bike taxi services by asking users to book parcels and then ride along.

"We are not doing this to break rules but because we have no choice. If the platform allows parcel bookings, and the customer agrees, we continue," explained another rider, who is on the Uber app, from Electronic City.

Some riders said they have even seen a slight surge in parcel bookings since the ban, indicating that users, too, are adapting to this informal workaround to meet their commuting needs.

"Today, three customers asked me upfront if they can book with me as a parcel to travel. We both understand the situation," said a Rapido rider in HSR Layout.

While this stopgap solution is helping both riders and users manage the sudden disruption, it raises concerns about potential regulatory action if enforcement tightens in the coming days.

On the ground, some Ola-Uber riders said they were unsure whether the ban applied to them. Others claimed they would continue taking rides until there’s strict enforcement.

“There’s no clear instruction to us directly. If the app allows, I will continue. If the police stop us, I will shift to delivery,” said Vinod, an Uber Moto rider near Electronic City.

Grocery and food delivery to the rescue

Interestingly, many bike taxi captains also double as grocery and parcel delivery personnel for apps like Swiggy, Zomato, Dunzo and Zepto. Riders said they would now lean more heavily on these gigs to stay afloat.

“I was already doing some Zepto deliveries in the evenings. Now I will take up more delivery slots to cover the gap,” said Manoj K, a rider based in Bommanahalli.

What next?

Sources in the ride-hailing industry said Ola and Uber are seeking more time from the government to comply, especially since many of their riders depend solely on the platform for their livelihood.

Also read: Karnataka: Bike taxi association writes to Siddaramaiah, Rahul Gandhi; seeks rollback of ban

Transport department officials told Moneycontrol that action will be taken against violators. “We have made our stand clear in the high court. We will follow the court’s order and enforce the ban,” transport minister Ramalinga Reddy said.

Ahead of the ban, the Namma Bike Taxi Association wrote to chief minister Siddaramaiah and Congress leader Rahul Gandhi, urging them to intervene and stop the move, warning that it would adversely affect thousands of gig workers across the state.

Labour minister Santosh Lad, however, told Moneycontrol, “We have not received any representation from the bike taxi association yet. Most gig workers are involved in deliveries. The decision to ban taxis is taken by the transport department—the labour department is not involved.”

Also read: No bike taxis in Karnataka from June 16 as High Court refuses to stay single judge order

On June 13, a division bench led by acting Chief Justice V Kameswar Rao issued notices to the state and others, seeking replies by June 20 on a plea against the ban.

The case will be heard on June 24. Ola and Uber have challenged an April 2 order of a single judge bench that banned bike taxis in the state in the absence of rules to regulate the service under the Motor Vehicles Act.

The deadline for the ban, initially six weeks from the date of the order, was later extended to June 15.