In a significant development for bike taxi aggregators operating in Karnataka, the Karnataka High Court has extended the deadline for them to suspend operations. Initially set for May 14, the deadline has now been extended to June 15, following applications from key aggregators including Rapido, Uber, and Ola.
The court's decision modifies its earlier order from April 2, which mandated the suspension of all bike taxi services within six weeks. The extension comes in the light of ongoing discussions regarding the formulation of a comprehensive bike taxi policy by the Karnataka government.
Roppen Transportation Services, operating Rapido, Uber India Systems, and ANI Technologies, which operates Ola, presented their cases before the court. They highlighted the government's exploration of a potential policy that could permit bike taxis under certain regulatory frameworks, such as the use of yellow boards and aggregation by licensed aggregators.
Rapido, in particular, stressed its recent engagements with state authorities, including formal representations and a high-level meeting chaired by Chief Secretary Shalini Rajaneesh. The company argued that a sudden ban without regulatory clarity would adversely affect the livelihoods of over 6 lakh individuals across Karnataka who depend on bike taxi services.
Highlighting the legal framework, Rapido pointed out that two-wheeler contract carriage has been permissible under the Motor Vehicles Act, 1988, with supporting advisories from the Union government. They also said that West Bengal, Jammu and Kashmir, Meghalaya, Assam, Rajasthan, Gujarat, Odisha, Uttarakhand and Delhi, permit bike taxis under their notified guidelines.
In response to the extension, the Karnataka High Court stressed the need for the state government to expedite the formulation of relevant guidelines under the Motor Vehicles Act, 1988. While refraining from mandating immediate regulatory action, the court urged responsiveness to evolving circumstances.
In its April 2 order, the court ruled that unless the state government notifies specific guidelines under Section 93 of the Motor Vehicles Act, 1988, and its corresponding rules, aggregators cannot operate bike taxi services. It also held that the Transport Department cannot be directed to register motorcycles as transport vehicles or issue contract carriage permits for their use as bike taxis.