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Bike Taxi Ban in Karnataka: Are Ride Apps Using ‘Parcel’ Mode to Operate?

Written by: Neha DubeyUpdated on: 17 Jun 2025, 3:06 pm IST
Karnataka HC bans bike taxis from June 16. Users spot 'bike parcel' options on apps as services pause pending state rules. Ride apps comply with order.
Bike Taxi Ban in Karnataka: Are Ride Apps Using ‘Parcel’ Mode to Operate?
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Karnataka has officially halted bike taxi services from June 16, 2025, following a High Court directive. In response, ride-hailing platforms like Rapido and Uber are rebranding the service under names like “bike parcel” or “moto courier” to work around the ban — sparking memes and confusion online, as per news reports.

Karnataka Suspends Bike Taxi Services After HC Verdict

The Karnataka High Court has enforced a ban on bike taxi services across the state effective June 16, 2025. This comes after the court rejected pleas from aggregators seeking to continue operations and upheld a directive requiring them to halt services until the government puts in place specific rules.

Popular platforms like Rapido and Uber have responded by disabling the bike taxi option in their Karnataka apps. However, users on social media claim the services haven’t disappeared entirely — they've just been renamed.

From Bike Taxi to Bike Parcel?

Screenshots circulating online show the ride apps still offering two-wheeler rides, but under labels such as “bike parcel” or “moto courier”. The rebranding has raised eyebrows, with many questioning whether it’s an attempt to circumvent the ban while still running the same service under a different name.

What Rapido Said?

Rapido issued a statement on June 16, confirming it has paused bike taxi operations in Karnataka to comply with the High Court ruling.

“While we strongly believe in the benefits bike taxis offer to daily commuters, we respect the law and will fully adhere to the directive,” the company said. 
“We remain committed to the communities we serve and hopeful for a future where convenient and affordable mobility is available to all.”

Why Was the Ban Enforced?

The roots of the controversy date back to 2022, when multiple petitions were filed requesting that motorcycles be allowed registration as transport vehicles, enabling bike taxi aggregation. An interim court order had prevented the state from acting against these services at the time.

However, in a final ruling on April 2, 2025, the Karnataka HC dismissed these petitions. The judgment cited a 2019 expert committee report that raised concerns about the safety and traffic implications of bike taxis.

 The court also directed the state government to draft clear regulations within 3 months — a deadline the state has missed.

Read More: Rapido Challenges Food Delivery Giants Like Swiggy and Zomato with Lower Commissions.

Conclusion

With the High Court ban now in effect and regulatory uncertainty looming, Karnataka’s bike taxi industry is at a crossroads. As riders get rebranded as “parcels,” the real question is when or if the government will roll out structured rules to accommodate two-wheeler ride-sharing in India’s tech capital.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 17, 2025, 9:33 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

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