Karnataka High Court Lifts Bike Taxi Ban, Clears Path for Rapido, Ola and Uber to Resume Services

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The Karnataka High Court on Friday set aside the Karnataka government’s ban on bike taxi operations, allowing ride-hailing platforms such as Rapido, ola and Uber to seek permissions to restart services in the state.

A division bench comprising Chief Justice Vibhu Bakhru and Justice C M Joshi allowed appeals filed by ride-hailing companies and the Bike Taxi Welfare Association, overturning a single-judge order passed in April 2025 that had suspended bike taxi operations until the state framed a formal policy.

Motorcycles Qualify as Transport Vehicles

In its ruling, the High Court held that motorcycles fall within the definition of “transport vehicles” under the Motor Vehicles Act, 1988, and that the state government cannot refuse permits solely on the ground that motorcycles are not transport vehicles.

The bench clarified that bike taxi operators and individual vehicle owners are entitled to apply to transport authorities for:

  • Registration of motorcycles as transport vehicles
  • Grant of contract carriage permits

While the state may examine such applications and impose regulatory conditions, the court said permits cannot be denied merely because the vehicle involved is a motorcycle.

Right to Trade and Central Guidelines

The court noted that bike taxi services are operational in several other states and observed that the activity is protected under Article 19(1)(g) of the Constitution, which guarantees the freedom to practise any profession or carry on any occupation, trade or business.

The bench also referred to the Central Motor Vehicle Aggregator Guidelines, 2025, which permit bike taxi operations subject to approval and regulation by state governments.

Background of the Ban

The Karnataka government had imposed the ban in March 2024, with the restriction coming into effect on June 16, citing policy gaps, safety concerns and the absence of a notified regulatory framework for bike taxis.

Friday’s ruling effectively removes the blanket prohibition, though operators will still need to comply with permit requirements and conditions imposed by transport authorities.

Implications

The decision is expected to provide relief to ride hailing platforms, gig workers and daily commuters, while also pushing the state towards framing a clear policy framework for bike taxis rather than relying on executive restrictions.

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