Daybreak - The Centre cleared the road for bike taxis. Karnataka still won’t hit the gas

Episode Date: July 3, 2025

Karnataka’s bike taxi ban has thrown Bangalore’s commute into chaos.Since June 16, services like Rapido, Ola, and Uber Moto have been off the roads, thanks to a High Court-backed state ban. But for thousands of gig workers and commuters, bike taxis were more than a convenience, they were a lifeline. As protests intensify and surge pricing spikes, this episode unpacks the policy deadlock, the Centre’s new guidelines, and why even women commuters are asking for the ban to be lifted.Tune in. To apply to The Ken's podcast team, click here

Hi, this is Rohan Dharma Kumar. If you've heard any of the Ken's podcasts, you've probably heard me, my interruptions, my analogies, and my contrarian takes on most topics. And you might rightly be wondering why am I interrupting this episode too? It's for a special announcement. For the last few months, I and Sita Raman Ganeshan, my colleague and the Ken's deputy editor, have been working on an ambitious new podcast. It's called Intermission.

We want to tell the secret sauce stories of India's greatest companies. Stories of how they were born, how they fought to survive, how they build their organizations and culture, how they manage to innovate and thrive over decades, and most importantly, how they're poised today. To do that, Sita and I have been reading books, poring over reports, going through financial statements, digging up archives, and talking to dozens of people. And if that wasn't enough, we also decided to throw in video into the mix. Yes, you heard that right. Intermission has also had to find its footing in the world of multi-camera shoots in professional studios, laborious editing, and extensive post-production. Sita and I are still reeling from the intensity of our first studio recording.

Intermission launches on March 23rd. To get alert, as soon as we release our first video. episode, please follow intermission on Spotify and Apple Podcast or subscribe to the Ken's YouTube channel. You can find all of the links at the ken.com slash I am. With that, back to your episode. Today, we are focusing on something that's been shaking up the daily commute, especially for Bangaloreans. Since the 16th of June, Karnataka has banned bike taxis like Rapido, Ola and Obermoto.

The Karnataka High Court backed the decision. by saying that there is no formal state policy on bike taxis under the Motor Vehicles Act. Fair enough. But for thousands of riders, bike taxis aren't just a ride option, they are a lifeline. Bike taxi drivers, many of whom were students and gig workers, are now protesting along with commuters. Some even went on a hunger strike outside Central College in Bangal, demanding that the ban be lifted, and also that bike taxis be regulated instead of repressed. And now, apart from not having access to bike taxis, commuters are dealing with a problem that's even worse. Surge pricing.

Several Bangaloreans have complained about fares more than doubling in the last couple of weeks. Tipping has become the new norm and even that does not guarantee them a ride. One resident told a National Daily how a less than 4km journey now costs 120 rupees by auto. It is more than double the 50 rupees bike taxi fare that they used to pay. Another student complained that despite offering $60 to $70 to $70 a stip, drivers either cancel or demand even more before they start the ride. The thing is, this isn't just a commuter issue. It's become a policy puzzle.

You see, the center recently released the Motor Vehicles Aggregator Guidelines 2025. And in it, it allowed states to legalize and regulate private bike passenger services, including allowing up to 2X surge pricing. But Karnatica hasn't acted on it yet. The ban on bike taxis continues and auto-risha unions are happy to fuel it. But here's a twist. You remember, Rappado was actually under the scanner

for their driver onboarding process after multiple incidents related to women's safety surfaced. But now, commuters, especially women commuters, are urging the Karnataka High Court to reconsider the ban. They're saying that bike taxis actually offer safer and more affordable last-mile transport in a city where buses and metro are still patchy. So where does that leave us?

A city choked in traffic with barely any cheap and fast transport options and not to forget, hundreds of gig workers out of jobs. Hello and welcome to Daybreak, a business podcast from the Ken. I'm Snigda and I'm Rahil and we don't usually chase the news cycle, but today we are. Every day of the week, we come to you with one new story that is worth your time and worth. understanding. Today is Friday the 4th of July. The Karnatica's bike taxi space has been stuck in a jam for quite a while now.

The big reason for this? Regulation. Or well, the lack of it. You see, in Karnatica, motorcycles are classified as private wakeers, which means they technically can't be used for commercial purposes like ferrying passengers for a fee. So when personal two-wheeler's are used as taxis, they're on paper breaking the law. So now you're probably thinking,

why not just tweak the rules? After all, bike taxis are hugely popular in cities like Bangalore where traffic is a daily nightmare. In places like these, bike taxis aren't just a much more pocket-friendly alternative. They are often the fastest way to get from point A to point B. But the thing is, the whole idea has felt jinxed from the start. As soon as bike taxis gained traction post-pandemic, auto-risha unions pushed back hard.

That, combined with growing safety concerns, meant bike taxis were functioning with their backs to the wall from the very beginning. Repeated bans, constant crackdowns by authorities, meant these bike riders were constantly having to look over their shoulder. And then in April, the Canadaica High Court ruled that bike taxis cannot be permitted to operate without proper notification of guidelines under Section 93 of the Motor Vehicles Act. Once that was done, aggregators like Rapido, Uber and Ola

had no choice but to stop bike taxi operations in the state. The result? Well, you can see for yourself. Traffic like we have never seen before. Traffic in Bangal isn't just bad, it's worse than usual. According to data from TomTom, the folks who track real-time traffic across the world, congestion in the city has been spiking every evening since the ban kicked in. On day one, which was June 16th, traffic at 7 p.m. jumped to 77% and that's way higher than the usual 59%. Just two days later, it got even messier at 83% congestion around the same time. That is a 22 point spike.

So if you felt like you've been spending much more time stuck at signals lately, you are absolutely right because you are. In a city with inadequate public transport infrastructure and a pension for digging up sidewalks, making it almost impossible for pedestrians to move around. Bike taxis seem like the perfect middle ground, wouldn't you say? Well, that's something several states are slowly realizing. Eight so far have permitted bike taxis.

They're forming regulations that allow them to operate legally while keeping both the rider and the consumer safe. Just take Maharashtra, for instance. It hasn't granted permission to any of the bike taxi apps. Instead, it only allows licensed operators with at least 50 bikes, all of which have to be electric. It has strict rules in place to ensure safety. So it's mandatory for these bikes to have GPS tracking

and for drivers to go through a rigorous police verification process. In fact, just this week, Maharasha's transport minister was in the news for posing as a commuter and catching a bike taxi operator in the act. He booked a bike taxi on Rapido under an alias and one promptly arrived 10 minutes later despite the ban. He wrote about his whole experience on social media

and has since gone viral. Meanwhile, after initially cracking down on bike taxis, Delhi changed course in 2023 by rolling out its own aggregator policy. But it came with a twist. Delhi wanted these services to be green. So it made it mandatory for all bike taxis to be electric, zero-emission vehicles. There's also an emphasis on passenger safety and service quality.

It puts in place strict standards for vehicle cleanliness, driver behavior, and timely resolution of customer complaints. So yeah, states have been starting to carve out their own rules, while Karnatica, meanwhile, refuses to budge. The ultimate milestone in the bike taxi story came just this week when the center finally stepped in. The Ministry of Road Transport and Highways just announced the Motor Vehicle Aggregator Guidelines 2025.

Finally, there was some clarity for the likes of OLA, Uber and Rapido on what they could and could not do. It allows for search pricing, set clear norms for driver commissions, cancellations and compliance, but it also officially legalized bike taxis. But, of course, there is a catch. At the end of the day, transport is a state subject. So while the centre has laid out the rules, it's ultimately up to states to adopt or reject them. Basically, the centre's guidelines have given us a roadmap, but it's still up to states like

Karnatica to really hit the gas. Stay tuned. What is really perplexing about this ban in Karnatica is that two wheelers are allowed for parcel or courier delivery, but not to run as bike taxis. Now, this is despite the fact that both fall under the gig economy and the Motor Vehicles Act. In fact, this happened to be one of the bigger points raised by protesters who started the hunger strike against the ban on Sunday. They see this as a double standard. Delivery bikes are allowed to operate, but carrying passengers is suddenly off. limits. The riders say that this is not just inconsistent, it is unfair. Around 30 bike taxi

riders launched an indefinite strike, setting up protest camps near Bangalore and around cities like Mysore, Mandya and Ramanagar. These riders are saying that the recent ban has completely disrupted their livelihoods and has stripped away a primary source of income for thousands. Their message to the government is clear. Don't ban us. Regulate us. The bike taxi Welfare Association has formally appealed to the chief minister and the state's transport minister urging them to introduce a clear legal framework that supports both safety and gig economy jobs. And apart from the bike taxi drivers, there's also a surprising set of protesters that are opposing the ban and are asking for the same thing, regulation. In fact, they even reached out to the

Karnataka High Court about it. During a Karnataka High Court hearing on July 2nd, women share a powerful message. Bike taxis are safer, more affordable and convenient, specially compared to buses and cabs. Now, I'll tell you why this is surprising. You see, Rappado's lack of concern for the safety of its customers, especially women, was quite an issue for the longest time when it started. There were multiple incidents reported that highlighted this.

You see, early on, when it entered the scene, Rappado wanted to beat Ola and Uber in the bike taxi space, and in order to do it, they made the process of onboarding drivers easy. A bit too easy. A driver had even explained to the ken how making a Rapido captain bike ID was a two-minute process. No wait time for documents to be verified. All they needed were three documents to start working as a bike taxi captain with Rapido.

A driving license, a vehicle registration certificate and an Adhara or Pancard. And a selfie of the rider. That is it. Nothing else. But things seem to have changed. changed ever since. Partly because these ride-hailing platforms like Rapid Over publicly called out and had no option but to tighten their driver onboarding process. Now, many women commuters have gone to the court pointing out how other states like West Bengal, Rajasthan, Kerala and Tamil Nad,

have successfully regulated bike taxis with safety protocols, not bans. They are urging the Karnataka High Court to reconsider, arguing that a regulated bike taxi network, complete with verification, tracking and registered drivers is critical. So bringing bike taxis back on the road is no longer a question of whether they belong on Bangalore's roads. We already know that they're essential. What is missing is political will. Other states have figured out how to regulate the space, then why not Karnataka?

Instead of banning an entire mode of transport, the government should be focusing on setting smart rules, ensuring safety and holding platforms accountable. The government can't keep hiding behind vague safety concerns or pressure from auto unions while ignoring the reality on the ground. Women commuters are calling these rides safer and more reliable than existing options. Thousands of drivers, many from marginalised backgrounds, have lost their only source of income. So, regulation, not prohibition, is the way forward. Daybreak is produced from the newsroom of the Ken

India's first subscriber-focused business news platform. What you're listening to is just a small sample of our subscriber-only offerings. A full subscription unlocks daily long-form feature stories, newsletters and podcast extras. Head to the Ken.com and click on the red subscribe button on the top of the Ken website. Today's episode was hosted and produced by Rahal Philipos

and I, Sinkda Sharma, and it was edited by Rajiv Sien. Thank you.