Why Have Bike Taxis Been Banned in Karnataka?

In a significant move affecting urban mobility and gig economy workers, Karnataka has officially banned the usage of bike taxis across the state, as per media reports. The decision comes amidsts legal and policy ambiguity surrounding the use of private two-wheelers for commercial ride-sharing services.

Reasons behind the move

The crackdown stems from a ruling by the Karnataka High Court earlier this year, which stated that operating bike taxis without proper commercial registration is illegal. While the court initially granted a grace period, it declined to extend it beyond June 15, effectively making the ban operational from June 16.

Whom does it impact?

The ban has directly impacted thousands of gig workers, many of whom rely solely on bike taxi income. According to estimates, over one lakh bike taxi riders may be affected in Karnataka, especially in urban hubs like Bengaluru.

Commuters too have been impacted as bike taxis offered an affordable and convenient last-mile transport solution. With the service off the roads, many of them face longer travel times and higher fares from autos and cabs.

Also Read: Karnataka High Court Orders Suspension of Bike Taxi Services, Sets Six-Week Deadline | Republic World

Industry response

Rapido has already suspended its bike taxi operations and has shifted its focus to parcel delivery and logistics. Ola and Uber have also followed suit by doing away with the bike taxi options.

Meanwhile, industry bodies such as Nasscom and the Internet and Mobile Association of India (IAMAI) have urged the Karnataka government to reconsider its decision, highlighting the potential loss of livelihoods and increased congestion due to the absence of low-cost mobility options.

What to expect now?

The Karnataka High Court has scheduled the next hearing on June 24 and has asked all parties to submit their arguments by June 20. Interestingly, the state government has indicated that it may come up with a dedicated policy for bike taxis in the future. Until then, services will remain suspended.