• Ola, Uber, and Rapido must halt all bike taxi services in Karnataka starting June 16, following a High Court order upholding the suspension.
• Rapido warns over 600,000 riders many dependent on the platform for income will be affected, with Bengaluru alone contributing Rs 700 crore in payouts.
• The court cited the state’s lack of regulatory intent; Nasscom urges the Karnataka government to create a formal framework to avoid mass disruption.

In a significant regulatory blow for India's ride-hailing behemoths, the Karnataka High Court has refused to stay a previous order suspending bike taxi services in the state. Consequently, operators such as Ola, Rapido, and Uber have been ordered to shut down all bike taxi services from Monday, June 16.

The division bench, comprising Acting Chief Justice Kameswar Rao and Justice Sreenivas Harish Kumar, reaffirmed the April 2 order of Justice B. Shyam Prasad directing a state-level suspension of bike taxis. The court said the issue would now be heard on June 24, with both the state transport department and the petitioners needing to file elaborate arguments by June 20.

As the ride-hailing companies approached the court seeking temporary relief, the court observed that any temporary reprieve would have necessitated initiative on the part of the state government towards the development of a regulatory policy. "The state government has clearly taken a policy decision of not being interested in framing a bike taxi policy," the bench noted.

The judicial fight arises from the lack of a state-wide regulatory system for the application of two-wheelers for commercial transportation. Petitioners claimed that in the absence of rules, the central government's advisory under the Motor Vehicles Act should be applied. The Karnataka government, however, replied that the advisory of the Centre was not binding in nature unless formally adopted by the state.