Rapido, Uber Moto, Ola Bike Barred As Karnataka Enforces Statewide Ban

Starting June 16, 2025, bike taxi services across Karnataka will be officially banned, following the Karnataka High Court's refusal to stay the state government's earlier order prohibiting such operations. The decision will impact major app-based platforms such as Rapido, Uber Moto, and Ola Bike, which now face legal action if they continue operations beyond the deadline.

The Transport Department had earlier declared bike taxi services illegal, arguing that existing laws only permit vehicles with commercial registrations and appropriate permits to transport passengers for hire. The High Court upheld this position, noting that without a specific policy or legal framework under the Motor Vehicles Act, bike taxis cannot be considered lawful.

According to government sources, no policy is currently under consideration to regulate bike taxis, and there have been no consultations with stakeholders to draft such rules. As a result, the sector remains unregulated and suspended indefinitely.

The ban is expected to have a far-reaching impact. Rapido, one of the leading operators, claims that over 600,000 riders will be affected, with approximately 75% of them depending on bike taxi services as their main source of income. The move has sparked widespread criticism, particularly in Bengaluru, where bike taxis were seen as a practical and affordable last-mile transport solution.

Industry leaders and advocacy groups, including Nasscom, have called on the state government to reconsider its decision, pointing to successful regulatory frameworks implemented in other states. They argue that bike taxis not only offer employment opportunities but also contribute to decongesting urban traffic and providing cost-effective transport options.

Despite appeals for interim relief and policy discussions, the Karnataka government has remained firm on its stance, with enforcement of the ban set to begin on June 16. The services will remain suspended until the state introduces a dedicated regulatory mechanism - which officials currently say is not in the works.