The Karnataka High Court on January 23 lifted the statewide ban on bike taxi services, allowing app‑based operators and thousands of gig workers to resume two‑wheeler taxi operations. The judgment restores a popular, low‑cost mode of urban transport and removes a major legal impediment for platforms that had paused services following the earlier order.
Background: Why bike taxis were stopped
The controversy originated in April 2025 when a single‑judge bench of the Karnataka High Court directed the state government to frame a specific policy for bike taxis under the Motor Vehicles Act. Until such rules were notified, the court ordered a halt to bike‑taxi operations, citing the absence of a regulatory framework.
The suspension affected daily commuters and thousands of riders who relied on app‑based aggregators for income. Operators argued motorcycles qualified as transport vehicles under the law and that a blanket stoppage caused undue economic hardship for drivers and disrupted affordable transport options for city residents.
Why the Division Bench lifted the ban
The Division Bench found that a complete prohibition was unreasonable and unsupported by existing law. The court observed motorcycles can be classified as transport vehicles and held that the mere absence of dedicated rules did not justify an outright ban on operations.
The bench also invoked the fundamental right to carry on trade and profession, noting state authorities may impose safety and regulatory conditions but cannot indefinitely prevent authorised economic activity simply because policy drafting is pending.
Implications for Rapido, Ola, Uber and other aggregators
With the ban removed, aggregators may now seek registration of two‑wheelers as transport vehicles and apply for permits from transport authorities. This clears a key legal hurdle for platforms such as Rapido, Ola and Uber, which had suspended their two‑wheeler services after the earlier order.
Industry stakeholders welcomed the ruling, saying it restores regulatory clarity, bolsters investor and operator confidence, and revalidates bike taxis as a cost‑effective mobility option and a significant source of livelihood for gig workers.
Impact on commuters and gig workers
For commuters in traffic‑congested cities like Bengaluru, the return of bike taxis promises shorter travel times, lower fares and improved last‑mile connectivity—advantages especially relevant to officegoers, students and short‑distance travellers.
For gig workers, the decision reinstates a critical income stream. Many riders had reported financial strain and uncertainty during the suspension period, and resumption of services is expected to alleviate immediate economic pressures.
Next steps for the Karnataka government
The state government is expected to proceed with comprehensive guidelines covering safety standards, insurance requirements, rider verification, vehicle conditions and operational protocols to ensure passenger protection and regulatory compliance.
The High Court’s ruling underscores the need for a balanced regulatory approach that facilitates innovation and employment while safeguarding public safety. As operators move to re‑register vehicles and seek permits, authorities and companies will need to coordinate swiftly to implement safeguards on the ground.
