Karnataka HC inclined to stay bike taxi ban amid gig worker law

Post by : Meena Rani

The Karnataka High Court on Thursday indicated that it is inclined to stay the ban on bike taxi services in the state, pending clarity on government legislation covering such operations. The observations were made by a Bench of Chief Justice Vibhu Bakhru and Justice CM Joshi while hearing pleas from Uber, Rapido, Ani Technologies (Ola Cabs), and the Bike Taxi Welfare Association challenging a ruling that prohibited bike taxis without state guidelines under Section 93 of the Motor Vehicles Act.

Court Hearing and Government Submission

During the hearing, Karnataka’s Advocate General (AG) Shashi Kiran Shetty informed the court that the state had recently enacted legislation aimed at protecting gig workers. The Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025, notified on September 12, includes “ride sharing” services under its schedule, defining services provided by aggregators or platforms.

Upon hearing this, the court remarked, “We are inclined to pass a full-fledged stay at this stage. We have been given the task by the government to come up with a policy for riders, but nothing has been done. You came up with it (a policy) for gig workers.” Responding to the court, AG Shetty clarified that the legislation covers two-wheelers as well.

The court also noted that despite the ban, bike taxi platforms continued operations, and urged the state government not to take coercive action against individual riders until the matter is resolved. The next hearing has been scheduled for October 15, 2025.

Background: Legal Dispute Over Bike Taxis

Earlier this year, a single-judge bench of the Karnataka High Court ruled that bike taxi services could not operate until the state issued formal guidelines under Section 93 of the Motor Vehicles Act and related rules. The bench also stated that the government could not be compelled to process licence applications for these services.

In response, the state had imposed a blanket ban on bike taxi operations. However, last month, the high court criticised this approach, terming the state’s arguments as “thin” and “legally untenable.” Chief Justice Vibhu Bakhru observed that the mere lack of regulation cannot justify a blanket ban that deprives thousands of riders of their right to work under Article 19(1)(g) of the Constitution.

Gig Worker Legislation

The Karnataka Platform-Based Gig Workers Act, 2025, aims to provide social security and welfare benefits to gig workers in the state. Key features relevant to bike taxis include:

• Inclusion of “ride-sharing” services provided via platforms or aggregators.

• Legal recognition of two-wheeler ride-sharing services as legitimate work.

• Provision for welfare benefits and social security measures for gig workers, ensuring protection from arbitrary restrictions.

The act appears to have influenced the high court’s inclination to reconsider the ban, as it demonstrates that the government is moving towards a regulatory framework rather than maintaining a blanket prohibition.

Current Scenario for Bike Taxi Riders

Despite the ban, several bike taxi operators have continued service, highlighting the demand for flexible urban mobility options in Karnataka. The court’s emphasis on not taking coercive action against individual riders provides temporary relief to thousands who rely on bike taxis for income.

Legal experts suggest that if the high court grants a stay on the ban, bike taxi services could resume under regulatory oversight, while the government finalises a more comprehensive policy for riders.

Implications

The case has broader implications for gig economy workers and platform-based mobility services across India. A stay on the ban would:

• Reinforce the right to livelihood for thousands of riders under Article 19(1)(g).

• Encourage states to enact clear regulatory policies rather than impose blanket bans.

• Set a precedent for integrating gig workers into social security frameworks while balancing public safety and regulatory compliance.

Karnataka High Court, bike taxi ban, Uber, Rapido, Ola, gig workers