More than two months after banning bike taxi services in Karnataka, the state’s High Court has refused to stay its earlier order, marking a significant setback for mobility platforms like Ola, Uber, and Rapido. With this decision, bike taxi services will be required to cease operations across Karnataka starting July 16, unless the state government introduces a regulatory framework in the interim.
The ruling came from a division bench of the High Court comprising Chief Justice V Kameswara Rao and Justice Sreenivas Harish Kumar. The court stated that it might have considered granting interim relief to bike taxi operators had the Karnataka government shown any indication of moving forward with a concrete regulatory policy. However, with no such commitment made by the authorities, the bench stood firm on enforcing the original decision.
The original April 2 ruling had granted aggregators a six-week window to wind down operations. In the absence of a regulatory framework under the Motor Vehicles Act, 1988, the court concluded that the continuation of bike taxi services was in violation of existing norms. Karnataka’s current legal framework does not provide specific guidelines for regulating two-wheeler taxis, which leaves a gap in governance that has fueled both legal and operational disputes.
While the High Court had temporarily relaxed the enforcement of the April ruling until June 15, today’s decision effectively means that the grace period will not be extended. Services must come to a complete halt by July 16, following the next scheduled hearing on June 24, pending the state government’s response due by June 20.
The ongoing dispute highlights the regulatory vacuum that currently surrounds bike taxi operations in several Indian states. Karnataka had earlier implemented a scheme between 2021 and 2024 that allowed both individuals and companies to register electric two-wheelers as taxis. However, this initiative was rolled back in 2024, with the government citing multiple concerns—chief among them were issues related to the misuse of private vehicles as taxis, frequent clashes between auto drivers and bike taxi riders, and safety concerns, particularly for women commuters.
The state’s transport department has since been enforcing the court’s decision, which has created confusion and disruption for both service providers and consumers who rely heavily on bike taxis for last-mile connectivity.
Karnataka is not alone in its struggle to strike a balance between innovation in urban mobility and regulatory clarity. Other states such as Delhi, Maharashtra, and Tamil Nadu have also taken strong stances against bike taxis in the past, before either relaxing or modifying their regulatory approach. This patchwork policy landscape across India continues to pose a challenge for mobility startups looking to scale across multiple cities and states.
For now, unless the Karnataka government announces a regulatory framework soon, thousands of bike taxi drivers will face loss of livelihood, while commuters—especially in traffic-congested cities like Bengaluru—will have to turn to alternative, often more expensive, modes of transport.
With the clock ticking, all eyes are now on the state government’s next move. Will it offer a structured policy that balances innovation, regulation, and public safety? Or will Karnataka remain off-limits to one of India’s most widely used urban mobility solutions? The next few weeks will be critical in determining the future of bike taxis in the state.
