Karnataka IT & BT Minister Priyank Kharge has advocated for allowing bike taxi operations through regulatory sandboxes, potentially paving the way for app-based bike-taxi operators like Rapido, Ola, and Uber to resume services in the state, which remain suspended since a Karnataka High Court ruling on June 16 that cited a lack of regulatory framework for such services to operate.
“Just because we don’t have a formulated policy, we can’t stifle innovation,” Kharge said, referring to the ongoing bike taxi ban. “We are coming up with the Karnataka Innovation Authority, established under the Karnataka Innovation Authority Act, which has powers to relax state laws for establishing regulatory sandboxes in controlled testing environments.”
Kharge suggested using such regulatory sandboxes for services including bike-taxis that currently lack clear policies. “In cases where we don’t have a policy for such innovation, as of yet, the idea is to put it in a regulatory sandbox. This will allow them to function as long as they’re not breaking any law or doing anything unconstitutional,” he said. He emphasised the need for agile, open and foresighted governance: “Government needs to be as agile as startups, as open as corporates, and as foresighted as the public intends them to be.”
The comments contrast sharply with Transport Minister Ramalinga Reddy’s earlier statement that Karnataka has no plans to legalise bike taxis until Parliament amends the Motor Vehicles Act. Reddy’s comments had come in response to the central government’s notification on revised Motor Vehicle Aggregator Guidelines 2025, — which for the the first time give state governments across India a framework to allow bike taxis to operate white-plated motorcycles for shared mobility.