The Karnataka government has rescinded the Electric Bike Taxi Scheme 2021, citing violation of the Motor Vehicle Act, “deteriorating law and order” and saying the scheme was unsafe for women. This comes after objections raised by auto-rickshaw unions against the scheme.
The state’s transport department, in its notification, cited a report by a committee constituted under the chairmanship of the managing director of BMRCL, M Maheshwar Rao, whose verdict was not in favour of the implementation of bike taxis in the state.
“At present, some private app-based organisations are found to be illegally using non-transport two-wheelers as transport vehicles in violation of the Motor Vehicle Act and the rules framed under it,” the notification in Kannada stated.
“It has also been observed that in the private transport sector, there have been many conflicts, lawsuits filed against other auto rickshaw, taxi cab and taxi associations / drivers, bike taxi drivers. As a result, the law and order situation in the state is deteriorating and the scheme is unsafe for women. The scheme is making it difficult for the transport department to collect revenue and efficiently run promotional activities,” it added.
Ola, Uber and Rapido are among the ride-hailing platforms that ply bike-taxi services in the state. Ola re-launched its bike taxi offering as an all-electric play last year. Meanwhile, Rapido and Uber ply both e-bikes and ICE motorbikes as part of their fleet. Rapido is the market leader in the segment, its market share just shy of 60%, across all states.
Karnataka remains the largest market for Rapido’s bike taxi segment, which also recently began offering cab and autorickshaw services.
“The notification issued by the state government does not pertain to Rapido’s bike taxi operations within the state of Karnataka and Rapido will continue to operate and serve both its customers and captains in the state without any disruptions,” a Rapido spokesperson said in response to the latest development.
Ola and Uber did not immediately respond to a request for comments seeking clarity. In January, the central government had advised states to allow bike taxis to ply.
Auto drivers and cab associations in the state have staged multiple strikes, urging the government to issue a ban on bike taxis. While the government had vowed to “end illegal bike taxis”, it has stated that the ongoing cases involving Rapido at the Karnataka high court need to be heard and disposed of first before a decision can be taken on the matter.