Bengaluru, January 24, 2026 – In a landmark ruling that could reshape urban transportation in Karnataka, the state’s High Court has revoked the blanket ban on bike taxi services, paving the way for operators like Rapido, Uber, and Ola to resume operations. The Division Bench, comprising Justices S.R. Krishna Kumar and M.G.S. Kamal, delivered the verdict on January 23, 2026, directing the government to register two-wheelers as ‘transport vehicles’ and issue necessary permits under the Motor Vehicles Act, 1988 (MV Act). This decision overturns a previous single-judge order from April 2, 2025, which had halted bike taxi services pending the formulation of specific regulations.

The ruling comes amid growing demands for affordable, quick last-mile connectivity in bustling cities like Bengaluru, where traffic congestion and pollution are perennial issues. Bike taxis, often hailed as an efficient alternative to traditional autos and cabs for short trips, have faced regulatory hurdles since their inception. Proponents argue they boost employment for riders and reduce urban gridlock, while critics, including auto-rickshaw and taxi unions, cite safety concerns and unfair competition.

The Road to the Verdict: A Turbulent Journey for Bike Taxis

Bike taxi services gained traction in Karnataka following the introduction of the Karnataka Electric Bike Taxi Scheme in 2021, which aimed to promote eco-friendly urban mobility by allowing electric two-wheelers to operate as transport vehicles in designated urban areas. However, the scheme was short-lived. In March 2022, the state government imposed a de facto ban on non-electric bike taxis, citing a lack of legal framework and complaints from traditional transport operators about revenue losses and safety risks.

The controversy escalated when aggregators like Roppen Transportation Services Pvt Ltd (Rapido), ANI Technologies Pvt Ltd (Ola), and Uber India Systems Pvt Ltd challenged the restrictions. In April 2025, a single judge of the High Court upheld the ban, restraining these companies from offering bike taxi services until dedicated rules were framed. This led to widespread disruptions, with thousands of riders losing livelihoods and commuters facing higher fares for alternatives.

Undeterred, the aggregators, along with the Bike Taxi Owners’ Welfare Association and individual operators like Varikruti Mahendra Reddy, filed appeals. They argued that the ban violated their fundamental right to carry on business under Article 19(1)(g) of the Indian Constitution and contradicted the MV Act, which explicitly includes two-wheelers in the definition of ‘transport vehicles’ under Section 2(47). The state government, on the other hand, defended the prohibition as a ‘policy decision’ to protect public safety and regulate the sector.

Key Highlights of the High Court’s Ruling

In its detailed judgment, the High Court declared the state’s blanket ban “contrary to the provisions of the MV Act,” emphasizing that motorcycles qualify as ‘transport vehicles’ and can be granted ‘contract carriage’ permits under Section 74. The court set aside the single-judge’s order, criticizing the government’s reliance on an “unwritten edict” rather than a formal policy.

Key directives include:

Registration and Permits: Transport authorities must process applications to register two-wheelers as transport vehicles and issue contract carriage permits without undue delay. The Regional Transport Authority (RTA) can impose reasonable conditions but cannot refuse permits arbitrarily; any denial must be in writing with recorded reasons.

Licensing for Aggregators: Under the Karnataka On-Demand Transport Technology Aggregator (KODTTA) Rules, 2016, aggregators must update their licenses to include details of two-wheelers. Existing licenses for four-wheelers do not automatically extend to bikes; separate or combined applications are allowed.

Display Requirements: Given the open nature of two-wheelers, permits and driver details – including photographs, names, driving licenses, badges, and police-issued ID cards – must be displayed in an accessible manner for passengers.

Constitutional Safeguards: The court affirmed that operating bike taxis is a protected business activity, and a total ban does not qualify as a “reasonable restriction” under Article 19(6). However, the state retains the power to enforce safety norms and other necessary conditions.

The Bench also noted that the 2021 scheme itself acknowledged amendments to the MV Act, allowing e-bikes as transport vehicles, and questioned the government’s inconsistent stance.

Implications for Stakeholders: Relief and Regulations Ahead

For aggregators like Rapido, Uber, and Ola, the verdict is a significant breather. Rapido, which claims over 100,000 riders in Karnataka, welcomed the decision, stating it would “unlock opportunities for gig workers and enhance affordable mobility options.” Uber and Ola echoed similar sentiments, highlighting the potential for job creation amid rising unemployment in the gig economy. Analysts estimate that full-scale resumption could add thousands of bikes to the roads, easing peak-hour commutes in tech hubs like Bengaluru’s Electronic City and Whitefield.

Commuters stand to benefit from lower fares – bike rides often cost 30-50% less than cabs for short distances – and faster travel times in traffic-choked areas. Environmental advocates praise the push towards electric variants, aligning with Karnataka’s green mobility goals.

However, the ruling has sparked mixed reactions. Auto-rickshaw and taxi unions, who have long opposed bike taxis for allegedly undercutting fares and bypassing regulations, plan to appeal or seek stricter enforcement. “While we respect the court, safety must not be compromised,” said a representative from the Karnataka Auto Drivers’ Union.

On the regulatory front, the government must now expedite permit processes. Pending applications from aggregators will be prioritized, but compliance with conditions like insurance, vehicle fitness, and rider background checks will be mandatory. The state could introduce caps on the number of permits or zone-specific restrictions to balance interests, as empowered by the Central government under the MV Act.

Broader Impact on India’s Gig Economy and Urban Transport

This decision sets a precedent for other states grappling with similar issues. Maharashtra and Delhi have imposed partial bans on bike taxis, while Tamil Nadu and Andhra Pradesh allow regulated operations. Nationally, the gig economy – valued at over $5 billion – relies heavily on such platforms, employing millions of young workers.

Experts predict a surge in investments in electric two-wheelers, with companies like Ather Energy and Ola Electric ramping up production. However, challenges remain: Road safety data from the Ministry of Road Transport and Highways shows two-wheelers involved in 44% of accidents in 2025, underscoring the need for robust training and helmet mandates.

As Karnataka moves forward, the focus will be on collaborative rulemaking. Transport Minister Ramalinga Reddy indicated the government would “study the judgment and frame guidelines soon” to ensure orderly implementation.
In a state where innovation meets tradition, this High Court nod could accelerate Karnataka’s transition to smarter, more inclusive urban transport – one ride at a time. DeshBharat