Bike Taxi News: The High Court has ordered the closure of all bike taxi services operating in the state within 6 weeks. The decision will apply to app-based ride-hailing companies like Rapido, Ola and Uber.
The court clarified that bike taxi services will remain illegal until the government issues clear guidelines under Section 93 of the Motor Vehicles Act, 1988.
The Karnataka High Court has ordered the closure of all bike taxi services operating in the state within 6 weeks. The decision will apply to app-based ride-hailing companies like Rapido, Ola and Uber (ola ban in karnataka). The court clarified that bike taxi services will remain illegal until the government issues clear guidelines under Section 93 of the Motor Vehicles Act, 1988.
What was the matter?
The matter came in response to petitions filed by companies like Rapido, Ola and Uber seeking aggregator licenses and legal recognition for bike taxis. The companies had also requested the court to direct the state government to frame rules. But a bench of Justice B.M. Shyam Prasad made it clear that the court cannot force the government to frame rules.
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What will happen now?
The state government will have to frame new rules for bike taxi services within 3 months.
No app will be able to run bike taxi services until the rules come into effect after 6 weeks.
If any company violates this order, legal action can be taken.
Impact on a large part
Transport Minister Ramalinga Reddy welcomed the court’s decision and said the government will make rules keeping in mind the safety of passengers. Rapido expressed concern that the decision would affect the livelihood of over 10 lakh drivers. The company indicated that it may take legal action.
Drivers who are completely dependent on this business are facing a livelihood crisis. App-based companies will suffer huge losses as Karnataka has been their main market.
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