Breather for Rapido, Uber, Ola as Karnataka HC Lifts Ban on Bike Taxi Services

The Karnataka High Court on Friday revoked the ban imposed on Bike taxi services in the state, Bar and Bench reported.

A Division Bench including Chief Justice Vibhu Bakhru and Justice CM Joshi acted on the appeals of ride-hailing platforms such as ANI Technologies (which owns OLA cabs), Uber, and Rapido, along with the Bike Taxi Welfare Association.

The appeals were filed challenging an April 2025 single-judge order to halt bike taxi services in Karnataka until the State frames rules for such operations.

The court’s decision clears the way for platforms such as Ola, Uber and Rapido to resume bike taxi operations, while complying with the state government’s set mandate.

The Order

The Court stated that the motorcycles used for bike taxi services fall under the category of “transport vehicles” as per the Motor Vehicles Act, 1988. Therefore, the State government is not authorised to refuse or deny permits to such vehicles on the ground.

It added that bike taxi operators can file applications to obtain permits to operate motorcycles as bike taxis. The state is authorised to grant permits by accepting the applications based on relevant aspects. However, the court said applications cannot merely be rejected based on the vehicle being a motorcycle.

"We direct the State government to consider such applications for registration of the owner of vehicles as transport vehicles and grant permission to operate as contract carriages. While concerned authorities are not precluded from examining the relevant aspects, the same will not be denied on the ground that motorcycles cannot be operated as transport vehicles or contract carriages,” the Court's order said.

“The regional transport authority may impose such conditions as it may consider necessary ... in accordance with law, having regard to Section 74(2) MV Act. Aggregators are also at liberty to file fresh applications...and in the event such applications are filed, they will be considered in accordance with law and observations of this court. Impugned Order is set aside and Appeals are allowed in the aforesaid terms," it added.

Case Background

In March 2024, Karnataka government banned the operation of bike taxi services in the state, citing ride-hailing platforms’ inability to offer electric two-wheelers and alleged policy misuse.

Justice BM Shyam Prasad in his April 2, 2025 judgment urged the the state government to frame a policy around the issues. He noted that ride-hailing platforms cannot offer bike taxi services in Karnataka until a policy is in place.

“If the circumstances justify a new approach, the state government should not lag…an institution which refuses change becomes the architect of decay,” he said.

During hearings of this case, the Bench had repeatedly questioned the State on its delay in framing policy to regulate bike taxi operations in Karnataka. The previously noted that the Court will be bound to lift the ban if the policy is not promptly put in place.

In its latest verdict, the Court observed that the existing regulatory framework around bike-taxi services were not sufficient and required reconsideration and suitable amendment, hence lifting the ban.