In a setback to Rapido, Ola, and Uber, the Karnataka High Court on Friday refused to stay a single-judge bench order directing the suspension of bike taxi services in the state. which will come into effect from Monday. With the high court refusing any interim relief, bike taxis are set to go off the road in Karnataka from Monday.
A division bench of Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar noted that interim relief could have been considered if the state government had showed interest in drafting a bike taxi policy. “However, the state government has clearly made a policy decision of not being interested in framing a bike taxi policy,” Justice Rao observed.
The court adjourned the matter to June 24, asking parties to file submissions by June 20. The single-judge bench order of April directing suspension of bike taxi services will stand until the matter is disposed.
The aggregators had sought extension of the June 15 deadline to suspend operations, arguing that central government guidelines under the Motor Vehicles Act should apply in absence of state rules. The government countered that the Centre’s guidelines are not binding unless adopted by states.
The suspension threatens the livelihood of more than 600,000 people across Karnataka, according to Rapido’s submissions. The company highlighted disbursing Rs 700 crore to drivers and contributing Rs 100 crore in goods and services tax (GST) in Bengaluru alone. Rapido argued that 75% of bike taxi riders depend on the platform as their primary income source, earning an average Rs 35,000 monthly.
The April 2 order had directed all bike taxi operators to suspend services pending formation of state rules under Section 93 of the Motor Vehicles Act. The high court had subsequently granted a four-week extension from May 14, which expires on June 15.
The ruling deals a significant blow to the bike taxi segment, which initially gained popularity in Bengaluru after Rapido launched services in 2016. Uber and Ola launched similar services across India as bike taxis continue to gain popularity among commuters as an affordable last-mile connectivity solution in densely populated urban areas.
Nasscom urges state to extend June 15 deadline
Industry body Nasscom on Friday submitted a formal representation to Karnataka transport minister Ramalinga Reddy, seeking his immediate intervention on the bike taxi issue. The industry body highlighted Karnataka’s leadership in technology-driven innovation and the vital role of tech-enabled mobility solutions in supporting livelihood and improving last-mile connectivity. Nasscom appealed to the state government to provide interim relief by extending the June 15 deadline and to initiate a consultative process to develop a balanced regulatory framework, drawing from existing models in places such as Delhi, Telangana and Rajasthan.