'Difficult decision': Uber, Ola, Rapido shut bike-taxi operations in Karnataka as HC stays ban

Bike taxi services have been banned across Karnataka from June 16, 2025, following a Karnataka High Court order. The ban applies to all platforms, including Uber, Ola, and Rapido, which have now suspended their bike taxi operations in the state.

Uber confirmed it has suspended its bike taxi service in Karnataka, calling it a difficult decision that affects thousands of riders and drivers.

“Uber has taken the difficult decision to suspend bike taxi operations in Karnataka from June 16 following an order from the Hon’ble High Court. This will negatively impact the many thousands of riders who rely on bike taxis for their daily mobility needs, as well as the many thousands of drivers who rely on the service for their livelihood. We will continue engaging with the Government of Karnataka to help shape a progressive policy framework that enables safe, accessible, and affordable mobility options for everyone,” an official spokesperson of Uber told Fortune India.

Rapido and Ola have also paused operations, with Rapido replacing ride options with a “bike parcel” service, similar to Uber, which has retained its “Uber Bike Courier” offering.

Rapido has not responded to Fortune India on a request for comment on the impact.

An Ola spokesperson told Fortune India that it will comply with the court’s directive and is assessing the situation, without offering detailed comments yet, calling it “a premature situation.”

The ban is expected to significantly impact gig workers and mobility startups, cutting off a vital source of income. It is also a major disruption for commuters who relied on these services for quick, affordable travel, especially in traffic-heavy cities like Bengaluru. According to a PTI report, the Namma Bike Taxi Association, in a letter to Rahul Gandhi and Karnataka Chief Minister Siddaramaiah, stated that over 1 lakh gig workers are likely to be affected by this decision that complete over 8 crore trips in a year.

The Karnataka Transport Department had earlier declared bike taxis illegal, stating that only commercially registered vehicles with proper permits can be used to transport passengers for hire. Most bike taxis operated through app-based aggregators, the department said, did not meet this requirement. When the platforms challenged the ban in the High Court, seeking a temporary stay, the plea was rejected on June 13.

This further adds to the problems of the mobility platforms that have already received notices from the Central Consumer Protection Authority (CCPA) for their advance-tipping features, where users are prompted to tip drivers before a ride begins. The CCPA has said that these features promote unfair trade practices by nudging users to pay extra for faster service. Union Minister Pralhad Joshi called the practice exploitative, arguing that tips should be voluntary tokens of appreciation, not preconditions. Though Uber introduced the feature in April 2025, it was first implemented by the Karnataka-backed Namma Yatri app in 2022, followed by Rapido in 2023.