Bike taxis back on Karnataka roads, aggregators breathe easy after high court relief

The Karnataka High Court on Friday permitted bike taxis to ply in the state. The court ruled that while the government is empowered to frame regulations and impose conditions to govern bike taxi operations, it cannot refuse to accept applications for taxi permits solely on the ground that the vehicle in question is a motorcycle.

The state government had imposed a blanket prohibition on bike taxis in June.

The court held that motorcycles used for bike taxi services fall within the definition of transport vehicles under the Motor Vehicles Act, 1988—a move welcomed by ride-hailing platforms.

“We welcome the Hon’ble High Court’s decision to recognize bike taxis as a legal mode of passenger transport in Karnataka. Bike taxis serve as a vital mobility lifeline for Indian cities, offering people an affordable and convenient way to navigate traffic. The decision will also bring relief to lakhs of drivers who depend on it for their livelihood. We look forward to engaging with the State Government on operationalising this mobility ecosystem and serving the mobility needs of our cities across the spectrum,” said an Uber spokesperson.

“...Recognizing bike taxis as a legitimate mode of transport is not just a legal victory for us, but a milestone moment for urban mobility in Karnataka,” said a Rapido spokesperson.

Bike taxi operators will need to apply for contract carriage permits in order to ply in the state.

“A ban in just one state, Karnataka, had shrunk the total bike taxi usage in India by nearly one-fourth," Mint had reported earlier. Rapido accounts for roughly 60% of India’s bike taxi market, with the remaining 40% split between Uber and Ola.

Bike taxis aren’t just another line item in Rapido’s books—they make up nearly half its revenue. Three-wheelers and cabs contribute the rest, but neither matches the scale of its two-wheeler play.

During the ban, Rapido even sought a workaround by venturing into food delivery, exploiting the gap where transporting pizzas was permitted but ferrying passengers was not. While three-wheelers and cabs make up the remainder of its business, neither comes close to matching the scale or significance of Rapido’s two-wheeler operations.

Unlike auto-rickshaws or cabs, bike taxis have long operated without uniform legal recognition across India. That balance had shifted modestly in July, when the ministry of road transport and highways issued fresh guidelines permitting the use of private two-wheelers for passenger rides through aggregator platforms. While the move did not amount to blanket approval, it established a clear regulatory pathway—one that could significantly reshape urban mobility, provided States choose to implement it.

A key concern for state government regulators is the use of white number plates, as most bike taxi riders operate personal two-wheelers, while governments require commercial services to run only on yellow-plate registrations. Maharashtra has sought to address this tension by permitting bike taxis only if they are electric vehicles, creating a narrower but clearer regulatory pathway.