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

Cab and auto rickshaw unions that have been demanding a ban on bike taxis welcomed the move

Commuters in Bengaluru are in for a rough ride as the Karnataka High Court on April 2 ordered a ban on bike taxi services within six weeks.

This comes close on the heels of a Metro fare hike of up to 71 percent and a 15 percent increase in bus fares.

The court has given the state government three months to formulate rules and regulations for bike taxi services.

A Rapido spokesperson, in a statement, said: "The High Court of Karnataka has directed aggregators to cease bike taxi operations after six weeks and has accordingly instructed the state transport department not to take any adverse action during this period. Karnataka-born Rapido is concerned about the welfare of the lakhs of bike taxi captains onboarded on the platform and will evaluate and pursue appropriate legal remedies once the detailed order is made available." Other aggregators, including Uber and Ola, are yet to react to the development.

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

Karnataka transport commissioner AM Yogeesh told Moneycontrol, "Once we receive the court order, we will examine it and take suitable action."

Karnataka had become the first state in the country to launch an electric bike taxi policy in 2021, but under pressure from auto rickshaw unions, it withdrew the policy in March 2024.

Auto and taxi driver unions welcomed the high court order, but many who until now regularly availed of bike taxi services said their commuting costs will increase.

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

K Somashekar, leader of the Karnataka Rajya Chalakara Parishath, which has been opposing bike taxis, said, "We welcome the court order to ban bike taxis, which will benefit both auto and taxi drivers. We have been demanding this for some time. We want the transport department to enforce it."

Many regular bike taxi users said they depended on the service due to the absence of shared autos, the persistent refusal to ply by auto drivers and a lack of feeder buses. Sushmitha S, a resident of East Bengaluru, said, "Bike taxis were a good alternative to autos. They have saved me many times when auto drivers refused to charge reasonable fares. The competition from bike taxis also kept auto drivers in check. I have been a regular user and have never had a bad experience. I am not aware of the legalities but the court and government should approve innovative solutions instead of banning them," she said.

Adi Narayana, president of the Bike Taxi Association, said: "There are more than 1 lakh full-time and part-time bike taxi drivers, and their livelihood will be affected if it is banned. Aggregators have assured us that they will approach the Supreme Court for a stay against this ban."

A mobility expert, on condition of anonymity, said, "This isn’t surprising. Union and state governments often clashed over bike taxi rules. But ride-hailing firms may appeal in the Supreme Court against this."

Poor last-mile connectivity, auto drivers’ refusal to ply by the meter and affordable rides—starting as low as Rs 10 per km—had made bike taxis an attractive choice for commuters.

Also read: Bengaluru: After BMTC-Metro hike, auto-rickshaw charges set to rise; unions demand Rs 40 minimum fare

Commuting costs in Bengaluru will further increase as auto-rickshaw fares are expected to rise. Auto drivers are demanding an increase in the minimum fare from Rs 30 to Rs 40 for the first 2 km and from Rs 15 to Rs 20 for each additional kilometre.

Meanwhile, the price of diesel in Karnataka rose by Rs 2 to Rs 90.90 per litre after the state's higher sales tax—from 18.4 percent to 21.17 percent—took effect on April 1.

Regulatory hurdles for bike taxis

The bike-taxi segment had faced multiple challenges, including regulatory hurdles, opposition from auto unions and safety concerns among women riders. Rapido introduced bike taxis in Bengaluru in 2015. The commercial use of private (white-board) two-wheelers has also led to bans in states such as Delhi, Maharashtra and Assam. Many early players in the sector, such as HeyTaxi, Baxi, Bikxie and M-Taxi, either shut down or scaled back due to regulatory challenges.

In February 2024, the Union Ministry of Road Transport and Highways issued an advisory stating that motorcycles qualify as contract carriages under the Motor Vehicles Act, 1988. This advisory urged states and union territories to process contract carriage permits for motorcycles, potentially opening up the market further.

Also read: Good news for Rapido, Ola, Uber as govt set to legalise bike taxis