a day ago
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.
