Rapido’s 1.5 lakh riders face uncertainty as Karnataka HC bans bike taxi

In a significant setback for bike taxi aggregators, the Karnataka High Court has ruled that bike taxi services cannot operate in the state until the government frames specific rules and regulations under Section 3 of the Motor Vehicles Act, 1988. The April 2 order directs the state government and transport department to ensure all bike taxi services cease operations within six weeks.
The decision is likely to directly affect nearly 1.5 lakh Rapido bike taxi riders, commonly known as 'captains', and may disrupt over 50 lakh monthly rides across Karnataka. Rapido is the biggest bike taxi player in Karnataka with Ola and Uber as strong competitors.
This move mirrors Delhi’s stance, where a similar ban has been in place since 2023. However, enforcement in the national capital has remained lax, with many aggregators continuing operations amidst ongoing policy formulation.
In Karnataka’s case, the High Court has given the state government and transport department a three-month window to draft and implement guidelines that would regulate bike taxi operations going forward.
Reacting to the development, a Rapido spokesperson said, “We strongly believe that bike taxis are an integral part of urban transportation, bridging crucial first- and last-mile gaps for commuters. As the government works towards framing a regulatory framework, we remain optimistic that the voices of gig workers, who rely on bike taxis for their livelihood, will be considered.”
The company also said it is reviewing the court order and is evaluating possible legal remedies to ensure uninterrupted service for its users.
This is not the first time Karnataka has pulled back support for bike taxis. An earlier attempt to regulate the sector through the Karnataka Electric Bike Taxi Scheme, launched in July 2021 to promote electric vehicle use, was eventually withdrawn after failing to deliver expected results.
As the state prepares to formalise the bike taxi sector, aggregators, gig workers, and commuters await clarity on the future of a service that has become essential in many Indian cities.
 

Published on: Apr 04, 2025, 6:38 PM IST