In a significant blow to India’s ride-hailing sector, the Karnataka High Court has refused to stay an earlier ruling that suspends bike taxi services across the state. Companies like Ola, Uber, and Rapido must halt these services starting Monday, June 16.
A division bench headed by Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar instructed both the petitioners and the state transport department to present detailed arguments by June 20. The next hearing is scheduled for June 24. Until then, the April 2 order from Justice B. Shyam Prasad, which mandates a statewide suspension, will remain effective.
The bench remarked that interim relief could have been granted had the state shown willingness to regulate bike taxis. However, it noted the government’s clear disinterest in framing relevant policy.
The suspension was initially ordered in April with a six-week compliance window, later extended. The petitioners argued that in the absence of state rules, the Centre’s Motor Vehicles Act guidelines should apply. The state countered that the Centre’s advisory holds no authority unless adopted at the state level.
Rapido warned the ban could severely impact over 6 lakh riders across Karnataka, many of whom earn around ₹35,000 monthly. In Bengaluru alone, Rapido claims to have disbursed ₹700 crore in earnings and contributed ₹100 crore in GST.
Tech body Nasscom has urged Transport Minister Ramalinga Reddy to rethink the ban, stressing the economic disruption for gig workers and the need for collaborative regulation.
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