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Ola, Uber and Rapido Bike Taxi Services in Karnataka to Stop from June 16, 2025

Written by: Team Angel OneUpdated on: 16 Jun 2025, 8:35 pm IST
Bike taxi services like Ola, Uber, and Rapido will be suspended in Karnataka from June 16 as the state has not framed rules required under the Motor Vehicles Act.
Ola, Uber and Rapido Bike Taxi Services in Karnataka to Stop from June 16, 2025
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Bike taxi services offered by Ola, Uber, and Rapido will stop operating in Karnataka starting June 16, 2025, as per the reports. This follows the Karnataka High Court’s decision on June 13, 2025, not to stay an earlier ruling that directed these services to be suspended unless the state government introduces specific rules under the Motor Vehicles Act.

The ruling came from a division bench led by Acting Chief Justice V Kameswar Rao and Justice Sreenivas Harish Kumar. They declined the companies’ request for interim relief, noting that the state government had chosen not to create rules for bike taxis.

Background 

The legal issue dates back to April 2, 2025, when Justice B Shyam Prasad ordered that all bike taxi services in the state must stop within six weeks. That deadline was extended once, until June 15, 2025. Appeals were later filed by ANI Technologies (Ola), Uber India, and Roppen Transportation (Rapido), challenging the order.

Legal Proceedings

In earlier proceedings, the companies argued that under central government rules, 2-wheelers can be used as transport vehicles. However, the Advocate General argued that these vehicles cannot operate as bike taxis without a state-level policy. The court agreed and upheld the ban.

The next hearing is scheduled for June 24, 2025. All parties have been asked to submit their responses by June 20, 2025.

Read more: Rapido Challenges Food Delivery Giants Like Swiggy and Zomato with Lower Commissions!

Impact on Ola, Uber and Rapido Bike Taxi Platform Workers

Rapido informed the court that the ban would affect over 6 lakh people in Karnataka who rely on bike taxi services for income. According to the company, 75% of its riders use the platform as their primary source of income, earning around ₹35,000 per month. Rapido also stated it has paid over ₹700 crore to its riders in Bengaluru and contributed ₹100 crore in GST.

State’s Position

As per the Moneycontrol report, the Karnataka Transport Department has confirmed that it will implement the court’s directive. Transport Secretary NV Prasad said no rules for bike taxis are being prepared, and there have been no discussions with stakeholders so far.

Conclusion

With the court refusing to allow bike taxis to operate without proper legal backing, services across Karnataka will remain suspended until the state decides to frame specific rules, a move it has so far declined to pursue.

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 16, 2025, 1:39 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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