The Karnataka High Court has set aside the ban on bike taxi services, allowing operators such as Ola, Uber and Rapido to resume operations. The court ruled that motorcycles qualify as transport vehicles and said the state may regulate the sector under law
Earlier, the court had questioned the state government’s decision to impose a blanket ban on bike taxis instead of regulating the sector. Representational pic
In a significant development, the Karnataka High Court (HC) on Friday lifted the ban on bike taxi services in the state, paving the way for operators to resume services. The court, however, allowed the state government to impose conditions in accordance with the law.
A division bench comprising Chief Justice Vibhu Bakhru and Justice CM Joshi allowed a batch of appeals filed by cab aggregators ANI Technologies (Ola), Uber, Rapido and others, challenging an earlier single-judge order that had directed bike taxi services to be halted until the state framed specific rules under the Motor Vehicles Act.
Setting aside the April 2025 single-judge order, the bench held that motorcycles used for bike taxi services fall within the definition of “transport vehicles” under the Motor Vehicles Act, 1988.
Consequently, it ruled that the state government cannot refuse or deny permits solely on the ground that motorcycles are not transport vehicles, news agency IANS reported.
The court observed that bike taxi operators are entitled to apply for contract carriage permits to operate motorcycles as bike taxis. While the state government is free to examine all relevant aspects while considering such applications, permits cannot be denied merely because the vehicle in question is a motorcycle.
“Taxi owners are at liberty to file applications for registration of the vehicle as a transport vehicle. We direct the state government to consider such applications for registration of the owner of the vehicle as a transport vehicle and grant permission to operate as contract carriages,” the bench said.
The court further stated that regional transport authorities may impose such conditions as they deem necessary in accordance with law, having regard to Section 74(2) of the Motor Vehicles Act, IANS reported. It also clarified that aggregators are free to file fresh applications, which must be considered in line with the law and the observations of the court.
Earlier, the court had questioned the state government’s decision to impose a blanket ban on bike taxis instead of regulating the sector. It observed that every trade is permissible unless regulated and that bike taxi services cannot be kept outside the scope of commerce.
The court reminded the state of its obligation to frame a policy, noting that judicial review would be limited to examining whether such a policy is arbitrary, IANS reported.
A single-judge bench of Justice B Shyam Prasad had, on April 2, 2025, directed that bike taxi services be halted within six weeks, following which the state government banned the service on June 16, 2025.
Rapido welcomes Karnataka HC's verdict
Welcoming the Karnataka High Court’s decision permitting bike taxi services, Rapido said the verdict marked a significant step forward for urban mobility in the state and validated bike taxis as a legitimate mode of transport.
The company said the ruling would benefit commuters by offering a safe, affordable and efficient travel option, while also creating livelihood opportunities for thousands of youth across Karnataka. It added that the decision would bring dignity and stability to its captains and contribute to the broader vision of inclusive and smarter mobility.
Rapido said it remains committed to complying with all applicable regulations and working closely with the Karnataka government under its guidelines to strengthen the mobility ecosystem.
“Recognizing bike taxis as a legitimate mode of transport is not just a legal victory for us, but a milestone moment for urban mobility in Karnataka,” a Rapido spokesperson said.
“As we move forward, we remain committed to complying with all applicable regulations and working closely with the Government of Karnataka,” the spokesperson added.
(With IANS inputs)
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