The Karnataka High Court has delivered a landmark judgment that paves the way for the legal operation of bike taxis in the state, overturning a previous ban and instructing authorities to issue necessary permits. This decision comes as a significant relief to aggregators and individual owners who have been advocating for regulatory clarity in this emerging transport sector.
Court Overturns Single-Judge Order, Sets New Precedent
A Division Bench comprising Chief Justice Vibhu Bakhru and Justice C M Joshi allowed a batch of appeals filed by prominent bike taxi aggregators including Ola, Uber, and Rapido, along with individual motorcycle owners. The bench set aside the earlier order dated April 2, 2025, which had prohibited bike taxi operations unless the state government notified specific guidelines under Section 93 of the Motor Vehicles Act, 1988.
The court emphasized that applications for registration of motorcycles as transport vehicles with yellow-coloured number plates cannot be rejected solely on the grounds that motorcycles cannot operate as transport vehicles. This clarification removes a major regulatory hurdle that had been stifling the growth of bike taxi services across Karnataka.
Directive to State Government and Transport Authorities
While pronouncing the order, the bench explicitly stated: "Taxi owners are at liberty to file applications for registration of the vehicles as transport vehicles (yellow boards). We direct the State government to consider such applications as transport vehicles and to grant permits to them to operate as contract carriages."
The court further directed the Regional Transport Authorities to consider imposing necessary conditions under Section 74(2) of the Motor Vehicles Act. These conditions typically include specifications about operational areas, routes, maximum passenger capacity, and luggage weight limits - all crucial parameters for ensuring passenger safety and service standardization.
Legal Framework and Constitutional Considerations
The judgment references Section 2(7) of the Motor Vehicles Act, 1988, which defines "contract carriage" as a motor vehicle carrying passengers for hire or reward under a contract. The aggregators had argued in court that the previous ban affected the livelihoods of approximately 6 lakh bike taxi owners and violated Article 19(1)(g) of the Constitution of India, which guarantees the right to practice any profession or carry on any occupation, trade, or business.
This constitutional consideration played a significant role in the court's decision-making process, highlighting the balance between regulatory oversight and economic freedom in India's evolving gig economy.
Requirements for Aggregators and Future Operations
The bench also permitted bike-taxi aggregators to file fresh applications for licenses under the Aggregator rules. A crucial requirement mandates that aggregators must display details of vehicle owners onboarded to their platforms, making this information accessible to riders. This transparency measure aims to enhance accountability and passenger safety in the bike taxi ecosystem.
This development marks a significant shift from the state's previous stance. In 2021, the Karnataka Government had introduced an Electric Vehicle (EV) policy that allowed bike taxis but later recalled it, creating regulatory uncertainty that has now been addressed by the High Court's definitive ruling.
With bike taxis already operating in 18 states across India, Karnataka's regulatory clarity could potentially influence similar decisions in other states grappling with the regulation of this increasingly popular mode of urban transportation.
