IAMAI Urges Government to Act Quickly as Bike Taxis Face Shutdown in Karnataka

In response to a Karnataka High Court order directing bike taxi services to halt operations unless formally regulated, the Internet and Mobile Association of India (IAMAI) has urged the state government to immediately notify guidelines for bike taxis. The association is seeking clarity on the legal status of these services and has called for a collaborative policy approach involving the government, industry, and worker groups to avoid disruption for commuters and gig workers, according to a report by The Indian Express.The association’s statement follows a Karnataka High Court order dated April 2, 2025.

The court directed companies like Rapido, Ola, and Uber to suspend bike taxi services within six weeks. It said the operations could not continue unless the state notifies regulations under Section 93 of the Motor Vehicles Act, 1988.IAMAI’s ResponseIAMAI has urged the Karnataka government to “urgently form a joint committee to formulate guidelines for bike taxis.



” The association stressed the importance of such services to urban mobility and employment.“Bike taxis have become an integral part of the public transportation ecosystem, particularly in Tier-1 cities like Bengaluru. With increasing traffic congestion and limited public transport options, bike taxis offer a convenient and cost-effective solution for lakhs of daily commuters and similarly provide livelihood opportunities for gig workers across the state.

”IAMAI proposed that the committee be “comprising officials from the State Transport Department, industry representatives, and gig-worker/bike taxi unions to provide inputs for the formulation of bike taxi guidelines, and allow temporary permits for safety-compliant aggregators during the policy formulation period to facilitate continued bike taxi operations.”It also expressed willingness to work with the government: “The industry is willing to coordinate and collaborate with the State Government in furtherance of the formulation of guidelines for bike taxis in the State of Karnataka. In view of the above, we request an urgent meeting to discuss collaborative next steps.

”Rapido Responds, Karnataka Yet to Finalise PolicyRapido responded to the order stating that it is currently reviewing the judgment and will explore legal remedies to ensure uninterrupted service. The company also urged the government to take into account the voices of gig workers while framing the new regulatory framework.Speaking to The Indian Express, State Transport Minister Ramalinga Reddy said, “We will review the certified copy in detail.

We will wait (before taking any action) as the court has granted six weeks’ time for the aggregators to cease operations. The court has also given time to the state government to frame appropriate guidelines for bike taxi operations. We will work on it accordingly.

”However, the Karnataka government has not yet decided whether to revive its Electric Bike Taxi Policy, which was launched in 2021 and withdrawn in March 2024, or introduce a new framework altogether. According to a Moneycontrol report, the Transport Department is also considering issuing temporary permits to avoid service disruption.Regulatory Uncertainty ContinuesThe legal confusion around bike taxis in Karnataka isn’t new.

Back in 2019, Bengaluru transport officials declared these services illegal, pointing to gaps in existing rules. Rapido kept running anyway, even as authorities seized vehicles and issued fines. The company argued there was no clear law barring its operations.

Since then, other states like Delhi, Maharashtra, and Assam have also cracked down on bike taxis. Despite the Centre issuing the Motor Vehicle Aggregator Guidelines in 2020 to help states regulate services like bike taxis, Karnataka has yet to adopt or notify any state-specific framework based on them, leaving the sector in a regulatory grey area.Gig Workers and Commuters AffectedThe High Court’s order affects thousands of gig workers and commuters who rely on bike taxis in cities like Bengaluru, where these services have become a popular transport option.

The decision is likely to directly affect nearly 1.5 lakh Rapido bike taxi riders, commonly known as ‘captains’, and may disrupt over 50 lakh monthly rides across Karnataka. Rapido is the largest bike taxi operator in the state, with Ola and Uber also offering similar services.

While autorickshaw unions have welcomed the move, bike taxi drivers and commuter groups have raised concerns over income loss and reduced affordable mobility options. With the ban set to take effect in mid-May, many are waiting to see whether the government will introduce a legal framework or temporary measures to ease the transition.Why This MattersThe court’s order has put the ball squarely in the state’s court.

If Karnataka doesn’t come up with clear rules within six weeks, platforms like Rapido, Ola, and Uber will have to pull their bike taxis off the roads.The case also points to a deeper issue: there’s a disconnect between what the Centre recommends and what states actually do. While the central government has pushed for a regulatory framework for aggregators, Karnataka still hasn’t made up its mind.

Bike taxis play a big role in urban mobility and gig work. What Karnataka decides next won’t just affect one state, it could set the tone for how other states handle platform-based transport in the future.Also Read:Does Karnataka’s ban on e-bike taxis call for a central regulation on cab aggregators?Ban bike taxis: Telangana Gig and Platform Workers’ Union write to the State Transport MinistryIAMAI Suggests Adjustments to Delhi Transport Portal for Better ComplianceThe post IAMAI Urges Government to Act Quickly as Bike Taxis Face Shutdown in Karnataka appeared first on MEDIANAMA.

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