Karnataka Bike Taxi Ban Takes Effect: 'Not Side Income, This Is How We Survive' Say 100,000 Drivers
High Court refuses to stay government order as Rapido, Ola, Uber services halt operations from June 16, leaving lakhs of gig workers unemployed
Bengaluru: A blanket ban on bike taxi services across Karnataka came into effect today, Monday, June 16, 2025, after the state High Court refused to stay an earlier order suspending these operations. The decision has left over 100,000 gig workers facing unemployment and uncertainty about their livelihoods.
The Karnataka High Court's decision marks a significant setback for India's ride-hailing companies and the thousands of drivers who depend on bike taxi services for their primary income. Justice B.M. Shyam Prasad had earlier issued the order clarifying that these companies cannot resume operations without proper regulatory compliance.
Impact by Numbers
- 100,000+ gig workers across Karnataka affected
- 1.5 lakh Rapido riders face job uncertainty
- 50 lakh monthly rides disrupted in Karnataka
- ₹35,000 average monthly income of bike taxi drivers
- 75% of drivers earn their main livelihood through these platforms
The ban has sparked widespread protests and appeals from driver associations. In a desperate plea for intervention, the Karnataka Gig and Platform Workers Union has written to Congress leader Rahul Gandhi, highlighting the severe impact on their livelihoods.
The controversy stems from regulatory issues surrounding bike taxi operations in the state. Unlike traditional auto-rickshaws and taxis, bike taxis do not pay recurring taxes to the state government, which has been a point of contention in the ongoing legal battle.
Economic Impact on Drivers
For most bike taxi drivers, this service represents their primary source of income, not supplementary earnings. Many drivers have invested in vehicles specifically for this purpose and now face the prospect of loan defaults and financial hardship.
The sudden implementation of the ban has left drivers with limited time to find alternative employment, creating a humanitarian crisis for thousands of families dependent on this income.
Rapido, which leads the bike taxi market in Karnataka ahead of Ola and Uber, has been particularly affected by this decision. The company has paid over ₹700 crore to riders and contributed significantly to the gig economy in the state.
The state government's reluctance to reconsider the ban stems from regulatory and taxation concerns. Officials argue that bike taxis operate in a legal grey area without proper licensing and tax compliance, unlike traditional commercial vehicles.
Driver associations are now exploring legal avenues and political interventions to reverse the ban. They argue that the decision affects not just their livelihoods but also urban mobility in cities like Bengaluru, where bike taxis provide affordable last-mile connectivity.
The ban has also sparked a digital revolt on social media platforms, with thousands of users demanding a reversal of the decision and highlighting the importance of bike taxi services for daily commuters and drivers alike.
As the situation unfolds, affected drivers are scrambling to find alternative sources of income, with many considering switching to food delivery services or seeking employment in other sectors. However, the sudden nature of the ban has left little time for such transitions.
The Karnataka government has indicated no immediate plans to review the ban, leaving the future of bike taxi services and the livelihoods of thousands of drivers in uncertainty.