Rapido, Ola & Uber Halt Bike Taxi Operations In Karnataka

Ride-hailing majors Rapido, Uber and Ola have temporarily suspended their bike taxi operations in Karnataka complying to the recent High Court order that banned bike taxis in the region. 

In its order, the HC had also asked Rapido, Uber and Ola including others to suspend their bike taxi services till a regulatory framework is prepared for recognising bike taxis in Karnataka. 

Rapido has sent a message to users on its app which said, “Starting June 16, 2025, our Bike Taxi services in Karnataka will be paused in compliance with recent High Court orders.”

“While we deeply believe in the value bike taxis bring to daily commuters, we respect the law and will fully abide by the directive. We remain committed to the communities we serve and hopeful for a future where convenient, affordable mobility is accessible to all,” the message further said. 

Now the application does not show the “bike taxi” option while booking a ride. Rather, it has been replaced with the “bike parcel” feature. 

Meanwhile, Ola seems to have removed the bike taxi option from the app.

The Bhavish Aggarwal-led startup did not share any official communication regarding the suspension to its users yet, but sources within Ola have confirmed the development to Inc42. Besides, the Ola app also does not show the ‘bike’ option while booking a ride. 

Ride hailing major Uber has also suspended its bike taxi operations in the city. “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. 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 Uber spokesperson said. 

What Led To The Bike Taxi Ban?

It all started in March 2024 when the Karnataka government withdrew its electric bike taxi scheme, citing that bike riders were breaking and violating rules laid down under the scheme. 

Pertinent to mention that in 2021 the then Karnataka government introduced the e-bike scheme as an effort to improve first and last-mile connectivity from metro, bus and railway stations, as well as to create employment opportunities.

Under the scheme, riders could register themselves as bike taxis. Besides, it also provided for operators to give insurance coverage for the riders. The state government cited multiple reasons for suspending the e-bike scheme from riders plying on the road with white board number plates to bitter confrontations between auto driver and bike taxi riders and reasons related to women safety. 

While all these were laid, pressure from the auto driver and taxi driver unions in Karnataka were suspected to be the main reason for suspending the e-bike scheme.

Later ride hailing platforms such as Rapido, Ola and Uber filed petitions with the HC seeking recognition for bike taxi services in the state. After a long back and forth, last month, the Karnataka HC banned bike taxi services in the state, effective June 16, 2025, following its refusal to stay an earlier order that mandated a halt to such services.

Will The Ban Hit Ride Hailing Operators’ Recovering Bottomline?

Looking at the market share in the bike taxi domain, Rapido seems to have bled the most with the HCs move. During an earlier interaction with Inc42, Rapido cofounder Aravind Sanka claimed that the ride hailing app enjoys a 70% country-wide market share in the bike taxi services and is a market leader in the segment. 

Rapido has recently touched the INR 1,000 Cr mark in revenues for the financial year 2024-25 (FY25). Besides, it managed to cut its loss by 45% to INR 370 Cr in FY24 from INR 675 Cr in the previous fiscal year.

While Ola consumers also reported a 57.46% decline in its consolidated net loss to INR 328.5 Cr in FY24 from INR 772.2 Cr in the previous fiscal year. However its operating revenue slipped 5.48% to INR 2,011.9 Cr for the period under review from INR 2,128.5 Cr in FY23.

While Uber’s India entity’s operating revenue grew 41% to INR 3,761 Cr in FY24 from INR 2,666 Cr in the previous fiscal year, as per its standalone financial statement sourced from Tofler. The company managed to narrow its loss by 71% to INR 89 Cr during the year under review from INR 311 Cr in FY23.

Update: The headline and the copy have been updated to include comments from Uber.