Karnataka High Court Lifts Ban on Bike Taxi Services, Allows Licensing

In a significant relief to bike taxi operators and commuters, the Karnataka High Court on Friday set aside the state government’s ban on bike taxi services, allowing them to operate subject to compliance with existing transport laws. The ruling overturns an earlier single-judge order that had upheld the prohibition imposed by the Karnataka government.

A division bench headed by the Chief Justice allowed appeals filed by ride-hailing aggregators and held that motorcycles can be used as transport vehicles if proper permissions and licences are obtained. The court clarified that bike taxi services are not illegal per se and can function within the framework of the Motor Vehicles Act and relevant rules.

The court directed bike owners and aggregators to apply for the necessary licences and instructed the state government to issue permits in accordance with prevailing laws. It also made it clear that the absence of a dedicated policy for bike taxis cannot be used as grounds for imposing a blanket ban on their operation.

The ban on bike taxi services was enforced by the Karnataka government in June last year, citing regulatory ambiguity and safety concerns. The decision had affected several platforms, including Ola, Uber, and Rapido, all of which had been offering bike taxi services across major cities in the state. The government had relied on an earlier High Court ruling that declared such services illegal due to the lack of a clear regulatory framework.

However, the division bench observed that the law already provides mechanisms for registering and regulating transport vehicles, including two-wheelers, and that the government cannot impose an outright ban without exploring licensing and regulatory options. The court noted that denying permits altogether would go against the intent of transport laws, which are designed to regulate, not prohibit, lawful economic activity.

The ruling is expected to have a major impact on urban mobility in Karnataka, particularly in cities like Bengaluru, where traffic congestion and last-mile connectivity remain persistent challenges. Bike taxis are often seen as a cost-effective and time-saving alternative for short-distance travel, especially for office-goers and daily commuters.

The verdict also comes as a setback for the state government led by Siddaramaiah, which had defended the ban by arguing that bike taxis posed safety risks and operated without adequate legal backing. With the court’s directions now in place, the government will be required to process licence applications and create a functional regulatory pathway instead of enforcing a complete prohibition.

Industry stakeholders have welcomed the decision, calling it a step towards balanced regulation and innovation in the transport sector. Aggregators are expected to resume services after completing the licensing process, while the government may introduce additional guidelines to address safety, insurance, and rider eligibility.

The judgment is likely to influence similar policy debates in other states, where bike taxi services continue to face legal and regulatory uncertainty. For now, the Karnataka High Court’s ruling has reopened the door for bike taxis, signalling that regulation—not prohibition—should be the guiding principle for emerging mobility services.