The Karnataka High Court on Friday lifted the ban on bike taxi services in the state, paving the way for aggregators, including Ola, Uber and Rapido, to resume two-wheeler ride-hailing operations.
A Division Bench comprising Chief Justice Vibhu Bakhru and Justice CM Joshi set aside an April 2025 single-judge order that had prohibited bike taxis in Karnataka in the absence of state-specific rules under the Motor Vehicles Act.
The court directed the state government to consider pending applications from vehicle owners seeking registration of their motorcycles as transport vehicles and to grant permits to operate as contract carriages.
Can permits be denied for motorcycles?
“While the concerned authorities are not precluded from examining the relevant aspects of vehicle registration and issuance of permits, the same cannot be denied on the ground that motorcycles cannot be operated as transport vehicles or contract carriage,” the bench ruled.
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Bike taxi operations had come to a standstill briefly in June 2025 after the high court directed an immediate suspension of services following the single-judge order. Aggregators subsequently challenged the order citing loss of livelihood for riders. During the hearing, the court had verbally ordered authorities not to take coercive action until the matter is disposed. Uber, Ola, and Rapido had since resumed services under a lead-generation-only model, claiming to not earning any revenue from such operations. The latest judgment paves the way for platforms to revert back to their standard commision model. The development is significant as Bengaluru is the largest bike-taxi market in India.
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Uber says relief for drivers,talks with state
Uber said the ruling would “bring relief to lakhs of drivers who depend on it for their livelihood” and that it looked forward to engaging with the state government on operationalising the mobility ecosystem.
Rapido called the verdict “a milestone moment for urban mobility in Karnataka” and a win for commuters who now have access to affordable transport options. “This brings immense joy and dignity to our captains,” a company spokesperson said, adding that Rapido remained committed to complying with all applicable regulations.
An Ola spokesperson said the decision was “a welcome step and a clear signal in the right direction for urban mobility in Karnataka,” adding that bike taxis would help scale last-mile connectivity, reduce congestion and create flexible earning opportunities. |
