Rapido launches 'Bike Direct' as Uber, Ola halt services in Karnataka

Days after resuming bike taxi services in Karnataka, Rapido has launched “Bike Direct” to continue operations, while Uber and Ola have suspended theirs, two days after the Karnataka High Court clarified it had not authorised their return.

Moneycontrol reported that Uber has removed the “bike taxi” option from its app. On August 24, Rapido introduced a new feature, “Bike Direct,” allowing passengers to access bike taxi services, while Ola suspended the service after a brief resumption. However, Uber, Rapido and Ola were not available for comment.

Rapido’s 'Bike Direct' amid legal tangle

“Rapido Bike Direct is a lead generation service connecting Bike Taxi Captains directly with verified customers. This demand generation helps Captains earn a steady livelihood while offering customers safe, reliable, and affordable travel every day. Rapido Bike Direct is provided completely free of cost in Karnataka, with no financial incentives or charges for Bike Taxi Captains,” Rapido said in a note to riders.

Also read | Centre allows Ola, Uber to hike ride fare during peak hours; permits bike taxis

On August 22, the Karnataka High Court stated that it had not issued any order permitting bike taxi aggregators to operate in the state, adding that the state government was free to take action as long as it did not harass bike owners.

The clarification came a day after Rapido and Uber resumed bike taxi services in Karnataka. On August 20, the court had reprimanded the state government over its blanket ban on bike taxis, questioning why the service could not be regulated.

Rapido was the first to resume bike taxi services after more than two months, with Uber following a day later. After the court’s clarification, Uber suspended its bike services, and Ola, which had briefly resumed operations, also halted the service.

Bike taxi operators meet Rahul Gandhi

A delegation from the Karnataka Bike Taxi Welfare Association (BTA) also met Lok Sabha Leader of the Opposition Rahul Gandhi in Delhi to voice concerns over the suspension of bike taxi services in Karnataka, which has left more than six lakh riders without a source of income.

“Rahul assured the delegation that he had already spoken with the chief minister and the transport minister, urging them to address the issue urgently. He pledged to safeguard bike taxi riders’ livelihoods by implementing a clear and timely policy framework to enable the smooth operation of bike taxis in the state,” the BTA said in a statement.

The riders informed the Congress leader that they were struggling to pay school fees, rent, and EMIs on their vehicle loans. “Many have been compelled to take up irregular delivery jobs with lower and inconsistent earnings, resulting in mounting debt and emotional stress,” the statement added.

The association also presented a proposal, drawing from best practices in 17 other states where bike taxis are regulated.

Formulate policy at earliest: HC to govt

While clarifying the order, a division bench comprising Chief Justice Vibhu Bakhru and Justice CM Joshi, hearing appeals by Ola, Uber, and Rapido, urged the state government to formulate a policy at the earliest. “Give it serious thought; lives are at stake here. Every trade is permissible unless regulated. This (bike taxi) is not res extra commercium,” the bench said.

Also read | Rs 10-lakh penalty imposed on Rapido for misleading ads

The state government informed the court that a decision on bike taxis would be taken at the highest level.

The bench stated that it would not intervene in policy decisions but would review whether the government’s actions were arbitrary or mala fide. “We don’t have to be satisfied with the policy, only whether it is arbitrary,” the court said. The matter is scheduled for further hearing on September 22.