Karnataka HC refuses relief to bike aggregators; Nasscom warns state govt of huge job losses
Despite efforts from stakeholders, bike taxis will stop plying on roads post June 15 as the
Karnataka High Court
on Friday refused to stay a single judge's order prohibiting the use of such taxis until a formal policy is introduced. The appeal was filed by ANI Technologies (
Ola
) and
Uber India
, challenging Justice B Shyam Prasad's order to suspend services.
The division bench of acting chief justice Kameswar Rao and Justice Sreenivas Harish Kumar on Friday directed Ola, Uber and the transport department to file their submissions on merit by June 20. The matter was adjourned to June 24.
The IT industry body,
Nasscom
, on Thursday wrote to the
Karnataka government
urging it to defer the June 15 deadline, warning of large-scale livelihood disruptions. Nasscom said the role of tech-enabled mobility, such as bike taxis, boosts last-mile connectivity, eases traffic congestion, and supports gig workers.
'The ecosystem not only offers affordable and efficient mobility but also sustains lakhs of gig workers across the state, including students, women, migrants from other parts of Karnataka and those recovering from the post-pandemic economic crisis,' the industry body noted in its letter.
Nasscom requested the state government to provide interim relief while simultaneously initiating a consultative process to develop a balanced regulatory framework for a long-term solution.
It suggested that existing models in states like Delhi, Telangana and Rajasthan should be reviewed to formulate rules. Nasscom reiterated its commitment to work closely with the government to craft a forward-looking policy that supports innovation and ensures commuter safety.
Ride-hailing services and the state government had been at loggerheads after Karnataka, in March last year, banned the operation of bike taxi services owing to what the government saw as a lack of encouraging response from ride-hailing platforms to offer services with electric two-wheelers (E2Ws). The government withdrew the Karnataka Electric Bike Taxi Scheme that it had notified on July 14, 2021.
The sources in the government argued that the transport department was not inclined to allow bike taxi operations, as 1.7 lakh autos and cabs in Bengaluru paid taxes every quarter. However, bike taxis had no compulsion for such taxes as they are meant for private use, paying only a lifetime tax.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
an hour ago
- Hans India
Karnataka Bike Taxi Ban to Take Effect
Bengaluru: As the clock strikes midnight on June 15, Karnataka's bustling bike taxi services, a lifeline for millions in traffic-choked Bengaluru, will grind to a halt. The Karnataka High Court's refusal on Friday to stay an order banning operations from June 16 has sealed the fate of aggregators like Rapido, Ola, and Uber, marking a contentious end to a decade-long run in urban mobility. This decision, rooted in the state government's failure to frame a legal framework, has ignited a firestorm of criticism, with fears of job losses, worsening traffic, and a blow to the gig economy. Bike taxis first emerged in Karnataka around 2015, with Rapido capitalising on Bengaluru's notorious congestion to offer affordable, nimble last-mile connectivity. Ola and Uber soon followed, tapping into a demand that public transport struggled to meet. By 2021, the BJP-led government launched an ambitious Electric Bike Taxi Scheme, positioning Karnataka as a pioneer in green mobility and job creation. Yet, the initiative faced immediate backlash from auto-rickshaw and taxi unions, who saw the cheaper fares as a threat to their livelihoods. The scheme's withdrawal in March 2024, citing safety concerns and misuse of non-transport bikes, underscored the political clout of these unions. A 2022 interim High Court order had briefly allowed operations to continue, but the April 2, 2025, ruling by Justice B M Shyam Prasad demanded a regulatory framework within three months, which is a deadline the Congress-led government ignored. The court's latest refusal to extend relief, reported by legal analysts, reflects this inaction, leaving operators with no recourse. The ban's immediate impact will be felt by over 600,000 riders and commuters, according to Rapido's estimates presented to the court. Social media has amplified the outcry. Former Infosys CFO T V Mohandas Pai took to social media platform X, urging Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar to reconsider, calling the ban 'anti-citizen.' 'Please allow Bike taxis in Bengaluru. They are providing huge jobs, and very useful service for citizens. Our Metro is way behind schedule, bus service inadequate, we cannot have more using personal vehicles. Bike taxis reduce vehicles. Why is our govt hurting citizens like this? This is Anti Citizen', he said. Bengaluru, often dubbed the 'Silicon Valley of India,' grapples with some of the world's worst traffic. Bike taxis, with a Passenger Car Unit (PCU) of 0.38 for two passengers, offered a leaner alternative to cars (PCU 1.0). Their removal, critics argue, will clog roads further, forcing commuters into costlier autos or private vehicles. The state government defends the ban, citing safety risks and the lack of a legal framework under the Motor Vehicles Act, 1988. Yet, no concrete data supports these claims, and the 2019 Bangalore Metro Rail Corporation Limited (BMRCL) report, which opposed bike taxis, focused on congestion without addressing operational safety. The ban's roots lie in a decades-old rivalry between traditional transport unions and modern aggregators. Auto unions, celebrating the court's decision, have long pressured the government which is a dynamic that led to the 2024 scrapping of the electric bike policy. This contrasts with a January 2024 Union Ministry of Road Transport and Highways advisory encouraging states to legalise bike taxis; a trend Karnataka has bucked. Globally, cities like Jakarta thrive with regulated two-wheeler taxis, supporting 1.5 million drivers. In India, Maharashtra and Delhi are drafting frameworks, making Karnataka's stance an outlier. From June 16, enforcement will begin, with Transport Commissioner A M Yogesh confirming compliance with the court order last month. Riders may pivot to informal services, raising safety concerns without oversight. The ball is now in the government's court to draft regulations, but with the three-month deadline lapsed, optimism is low.
News18
2 hours ago
- News18
Goa's Aggregator Cab Guidelines Will Not Bring In Firms Like Ola, Uber: CM To Local Taxi Operators
Goa currently has two local aggregators - Goa Miles and Goa Taxi, which provide app-based service to customers. Goa's draft guidelines for cab aggregators will not open doors for companies like Ola and Uber, Chief Minister Pramod Sawant said on Friday. BJP MLAs Michael Lobo from Calangute and Jit Arolkar from Mandrem met him in the presence of taxi operators to discuss concerns of the trade with regards to the Goa Transport Aggregators Guidelines 2025 issued on May 20. The last date to give suggestions and raise objections is June 30. 'Taxi operators need not be in any sort of confusion. They have apprehensions that the guidelines will open doors for the aggregators like Ola and Uber which are operating outside Goa. The guidelines do not aim to open flood gates for national cab aggregators like Ola and Uber," Sawant told reporters after the meeting. Goa currently has two local aggregators – Goa Miles and Goa Taxi, which provide app-based service to customers. The taxi operators in Goa want the state government to take them into confidence before finalising the guidelines as they believe big firms from outside the state may start aggregator cab businesses here, Arolkar said. Lobo, meanwhile, said taxi operators want the government to keep the guidelines in abeyance. 'The issue was discussed with the chief minister who has assured that a meeting of MLAs representing constituencies in the coastal belt and all other stakeholders will be called before taking a final decision on the guidelines," Lobo said. First Published: June 14, 2025, 15:34 IST
Scroll.in
3 hours ago
- Scroll.in
Ola and Uber will not come to Goa, says CM Pramod Sawant
App-based cab services like Ola and Uber will not be allowed in Goa, said Chief Minister Pramod Sawant on Friday, reported The Indian Express. The announcement came after taxi operators in the state and some MLAs raised concerns about the Goa Transport Aggregator Guidelines, which were published in the gazette on May 20. The guidelines outline the framework to regulate app-based taxi and bike taxi operators through licensing fees, tariffs and incentives. Taxi unions fear this will enable the entry of app-based cab services in the state. 'People should not create confusion,' Sawant was quoted as saying by The Indian Express. 'These are the guidelines brought out for aggregators. Ola and Uber are not coming here. We have to put a system in place.' The Goa chief minister added that the government would 'take all the stakeholders – taxi owners, hoteliers and MLAs – everyone into confidence' to resolve the matter. The state transport department had invited feedback and objections to the guidelines within 30 days, The Indian Express reported. On June 9, hundreds of taxi drivers submitted formal objections at the department's Panaji office. Scroll has previously reported on the state government's efforts to introduce app-based taxis, which were met with protests. Taxi unions argue that the conflict over app-based services boils down to a question of employment for locals and that allowing large corporations with deep pockets to launch services in the state will result in 'outsiders' taking away jobs from the locals.
