Karnataka HC Orders Bike Taxi Operators Like Rapido, Ola To Suspend Services Within 6 Weeks

The ruling mandated the Karnataka government to introduce regulations under Section 3 of the Motor Vehicles Act, 1988, along with relevant rules before such services can legally operate.

This directive will impact major players such as Rapido, Ola, and Uber, who must comply with the order immediately.

Source : Instagram/@rapidoapp

In a significant legal development, the Karnataka High Court ruled that bike taxi aggregators cannot function in the state unless the government formulates and enforces appropriate guidelines.

The ruling, issued on Wednesday, mandated the Karnataka government to introduce regulations under Section 3 of the Motor Vehicles Act, 1988, along with relevant rules before such services can legally operate, reported The Indian Express.

The court further instructed the state transport department to ensure that all bike taxi operations come to a complete stop within six weeks. This directive will impact major players such as Rapido, Ola, and Uber, who must comply with the order immediately.

Six-Week Deadline for Compliance

Justice B M Shyam Prasad, presiding over the case, made it clear that companies offering bike taxi services must suspend their operations within the stipulated timeframe. Meanwhile, the state government has been granted three months to draft and implement the necessary regulatory framework for the sector.

"The transport department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for such services until appropriate government regulations are in place," Justice Prasad stated while delivering the verdict.

During the hearing, Senior Advocate Arun Kumar, representing one of the petitioners, pointed out that Ola only recently launched its bike taxi services in April 2024. While acknowledging this, the court maintained that all petitioners must adhere to the ruling and temporarily discontinue operations.

The judgment also referenced a 2019 expert committee report that analysed the impact of bike taxis on traffic and safety. The court underscored the importance of clear regulations before allowing such services to function again.

In his concluding remarks, Justice Prasad remarked that resisting progress could lead to stagnation, emphasising, "A person who denies change becomes the architect of decay."