Rapido, Ola, Uber to Halt Bike Taxi Services in 6 Weeks, Here's Why

In a major setback for bike taxi services in Karnataka, the High Court on Wednesday ruled that aggregators like Rapido, Uber, and Ola cannot operate in the state unless the government issues specific guidelines under Section 3 of the Motor Vehicles Act, 1988. The court has given the state government and the transport department six weeks to stop all bike taxi operations.

Justice B M Shyam Prasad made it clear that the petitioners, including Rapido and other aggregators, must suspend their services within the given time frame. The court has also given the government three months to draft the necessary rules for bike taxi operations.

"The transport department cannot be asked to register motorcycles as transport vehicles or issue contract carriage permits until the government sets proper regulations," Justice Prasad said while delivering the order.

Senior Advocate Arun Kumar, representing one of the parties, pointed out that Ola started its bike taxi services only in April 2024. While the court took note of this, it maintained that all aggregators must comply with the directive and halt operations.

The ruling also referred to a 2019 expert committee report that examined the impact of bike taxis on traffic and road safety. The court emphasized the need for clear regulations before allowing these services to continue.

Justice Prasad concluded by stating that opposing change leads to stagnation, quoting, "A person who denies change becomes the architect of decay."