Rapido, Uber Restart Bike Taxi Services in Karnataka After 2-Month Ban

According to a report by Moneycontrol, Rapido and Uber have resumed their bike taxi operations in Karnataka from August 21, 2025, after remaining suspended for 2 months due to a state-imposed ban. The resumption comes amid legal proceedings and rising pressure on the government from the High Court and mobility stakeholders.

Bike Taxi Services Resume Amid Ongoing Legal Uncertainty

As per news reports, the Karnataka government imposed a ban on bike taxi services effective June 16, 2025, disrupting daily commutes, especially in urban hubs like Bengaluru. However, on August 21, 2025, as per a report by Moneycontrol observed that both Rapido and Uber resumed offering bike taxi options on their apps and began accepting customer bookings. Ola has not yet resumed services. The ban was initiated after a court order directing the state to frame rules regulating such services under the Motor Vehicles Act.

High Court Pushes for Regulation

The Karnataka High Court questioned the rationale behind the blanket bike taxi ban, advising the government to regulate rather than prohibit. The court highlighted that bike taxis are permitted in 13 Indian states, indicating that the service is a “recognised trade” protected under Article 19(1)(g) of the Constitution. The judges stressed that the matter should be given “serious thought” before enforcing restrictions without a proper regulatory framework in place.

State Government’s Policy Position Remains Undecided

While Ride Aggregator Guidelines 2025, issued on July 1 by the Centre, permit the use of private bikes for rides with state approval, Karnataka has remained hesitant due to pressure from auto and taxi unions. Previously, the state had launched an Electric Bike Taxi Policy in 2021 but withdrew it in March 2024 amid opposition from unions. Transport authorities are currently in deliberations as the High Court has given the state 1 month to frame an appropriate policy.

Read More: Rapido to Pay ₹10 Lakh Fine for Advertising Misleading Promises of Guaranteed Auto in 5 Minutes!

Impact on Commuters and Mobility Stakeholders

Suspension of bike taxis forced many commuters to turn to personal vehicles, and auto fares surged amid a demand spike. Mobility welfare groups have advocated for legal inclusion and formalisation of bike taxis as part of urban transport policy. Stakeholders have called for constructive engagement with the state to ensure the safety, legality, and sustainability of bike taxi services.

Conclusion

The resumption of bike taxi services by Rapido and Uber marks a turning point for urban transport in Karnataka. As the High Court awaits the state's policy framework by September 22, 2025, the future of shared mobility in the state hinges on a balanced and legally sound regulatory approach.

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