Uber, Rapido must close bike taxi operations by June 16: Karnataka HC

The Karnataka High Court on Friday, June 13, ordered all app-based cab aggregators companies (like Ola, Uber, Rapido, etc.) to stop two-wheeler service by June 16 across the state.

A bench comprising Acting Chief Justice V Kameshwar Rao and Justice Sreenivas Harish Kumar rejected interim relief to the petitioners, Uber and Rapido, who had challenged an April 2 order by a single judge directing bike taxi operators to halt services within six weeks. That deadline was later extended to June 15.

The single judge had ordered that bike taxis cannot operate in Karnataka unless the state government notifies relevant guidelines and rules under the Motor Vehicles Act.

Uber and Rapido had also sought a directive that would allow them to use yellow license plates for commercial use of two-wheelers in Karnataka. However, the state government argued that under the On-Demand Transportation Aggregator Rules, 2016, this was not possible.

On Friday, the division bench observed that it could have considered staying the single-judge order if the state had said that it was in the process of framing rules, and there was some delay on their part, but the state said that it had taken a policy decision not to frame rules.

The Karnataka High Court stated that it could not grant any relief in the matter as it concerns state policy for which there was no guidance from the government. The bench acknowledged the consequences of the ruling for those employed in the services as well as public transport infrastructure, but remained unmoved nonetheless.

The next hearing is set for June 24.

The decision is significant not just for commuter services like Rapido and Uber Moto, but also for the largely working-class ride executives they hire for their commuter business.  The closure of bike-taxi operations is also set to immense impact on daily commuters who rely on these services in the metropolitan setting.