Karnataka High Court hears Uber, Rapido, and Ola’s appeal against the state’s bike taxi ban. Counsel argues aggregation is legal and benefits traffic, consumers, and last-mile connectivity.
Bengaluru: Today, on July 11, the Karnataka High Court continued hearing the appeals filed by leading ride-hailing companies like Uber India, Rapido, and Ola. These companies have challenged the decision of a single judge that upheld the state government’s ban on bike taxi services across Karnataka.
The court has now adjourned the matter, and the next hearing will focus on the State Government’s response to the arguments made by the aggregators.
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Senior Advocate Srinivasa Raghavan, representing the aggregators, submitted that there is no valid reason to stop the aggregation of bike taxis if motorcycles themselves are legally allowed to operate as taxis.
He argued that aggregators play an important role in providing last-mile connectivity and help in reducing traffic congestion. According to him, such services offer major convenience to the public and should be encouraged rather than banned.
During the hearing, he emphasized that the current legal framework does support the use of two-wheelers for commercial transport.
He told the court that the State’s approach is
“inconsistent and detrimental to consumers’ interest”.
He argued strongly that the Karnataka Government has no authority under the Motor Vehicles Act, 1988, or even under the Constitution of India, to impose a blanket ban on bike taxis.
“I am entitled to my right to do business, even aggregation is business,”
Raghavan told the court. He referred to Section 93 of the Motor Vehicles Act, which talks about the licensing of aggregators.
He clarified that this section does not restrict aggregation based on the type of vehicle and does not exclude two-wheelers from its ambit.
He also mentioned that the now-repealed e-bike policy of the State Government had previously accepted the feasibility of electric bikes for public transport and permitted their aggregation.
Therefore, the withdrawal of the e-bike scheme should not automatically affect the legal basis for aggregating motorcycles.
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Further, Raghavan criticized the Transport Department’s decision to reject the findings of a 2019 expert committee report. This report had recommended proper regulation of bike taxi services instead of banning them.
He found it questionable that the government dismissed such expert advice and continued with a ban.
At one point in the hearing, the High Court bench asked two important questions. First, whether a yellow board (typically used for commercial vehicles) is compulsory for individual bikes.
Second, whether green board cars (used for electric vehicles) can operate commercially without a permit. In response, Raghavan said,
“Requirement of permit is exempted for all e-bike.”
He continued to make a strong case for bike taxi services, stating:
“To prevent aggregation is not in the interest of consumers, is my submission milords. A person buys ten bikes and engages riders, the aggregator helps in the process. If bike taxi is allowed, there is no logic of not allowing aggregators…it will help in last mile connectivity and convenience.”
He reiterated that many commuters might prefer using a bike taxi instead of taking out their personal vehicle, which would contribute to reduced traffic on roads.
He concluded by emphasizing that aggregators are just enabling a legitimate service and should not be targeted with prohibitive regulations.
The High Court has now scheduled the next hearing to hear the State Government’s stand on the issue. The case remains significant as it will decide whether app-based bike taxi services can legally operate in Karnataka, potentially influencing policies across other Indian states as well.
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