The Karnataka government is investigating ride-hailing platforms Rapido and Uber for allegedly violating a High Court ban on bike taxi operations by offering similar services under alternative categories such as “Bike Parcel” and “Moto Courier”.
The inquiry was initiated after multiple social media users claimed they had used the companies’ parcel delivery features to travel as passengers. N V Prasad, secretary of the state transport department, confirmed the probe.
“We have received complaints that people are being transported under the guise of parcels. The department is actively investigating these claims. If it is found that operators have used these services to bypass the ban and ferry passengers, strict action will be taken,” Prasad told FE.
State transport minister Ramalinga Reddy also acknowledged the issue, stating,“We will stop this”.
Rapido and Uber did not respond to queries regarding this till the time of going to the press.
The High Court had earlier directed all bike taxi operators in the state to cease operations.
The Karnataka government imposed the ban citing safety, security, and enforcement concerns. According to industry estimates, the bike taxi segment records around 75 million rides a month, with Karnataka accounting for approximately 10% of the total.
Before the ban came into effet, Rapido was estimated to handle over 5 million rides per month in Karnataka, with a market share of around 70%. Uber, Ola, and other platforms made up the remainder.
Similar regulatory issues have surfaced in other states. In Maharashtra, Mumbai Police recently registered cases against bike taxi aggregators for operating without proper authorisation. RTO officials conducted test rides to verify the violations and subsequently filed complaints, stating that the companies offered passenger services without necessary permits.