Karnataka Panel Clears Two-Wheelers for E-Commerce, Rules Out Bike Taxis on Safety Grounds

Karnataka Panel Reaffirms Ban on Bike Taxis, Calls Them Unsafe and Illegal While Backing Two-Wheelers for Deliveries

A government-appointed expert committee in Karnataka has reinforced its stance that bike taxis are illegal, unsafe, and unsuitable for Bengaluru’s strained transport environment, even as it recommended that private two-wheelers continue to be allowed for e-commerce deliveries. The report—submitted after a High Court directive—marks a significant development in the ongoing debate over urban mobility, legal compliance, and the future of gig work in the state.

Chaired by Karnataka transport secretary N V Prasad, the panel draws a sharp legal and functional distinction between using two-wheelers for delivery services and using motorcycles for carrying passengers for hire. The committee concluded that while delivery vehicles move goods, bike taxis move people, and the latter constitutes a regulated transport activity that private motorcycles are not permitted to undertake under law.

Panel Says Bike Taxis Unsafe, Unlawful and Harmful for Bengaluru’s Traffic Ecosystem

The expert committee’s report states unequivocally that bike taxis violate the Motor Vehicles Act, lack mandatory commercial permits, and expose riders and passengers to significant legal and financial risk due to the absence of approved insurance products.

Under Section 66(1) of the Act, carrying passengers for hire requires a valid transport permit—something private motorcycles with white number plates do not have. The panel observed that most bike taxis operating through platforms like Rapido, Ola and Uber are “transport services masquerading as gig work,” deliberately bypassing regulatory scrutiny.

The panel also highlighted that the IRDAI has not approved insurance for private two-wheelers carrying passengers, leaving no legal protection in case of accidents—making bike taxis inherently unsafe.

Also Read : Darius Khambata Rejects ‘Coup’ Claims, Backs Noel Tata’s Leadership Amid Tata Trusts Row

Two-Wheelers for E-Commerce Deliveries Receive Clear Approval

While taking a strict position against bike taxis, the committee has supported the continued use of private two-wheelers for delivery services run by platforms such as Swiggy, Zomato, Zepto and BigBasket. It notes that the law does not require goods delivery to be conducted on commercial vehicles.

“Goods can be transported by walking, bicycles or private two-wheelers,” the report states, placing delivery work firmly within the realm of general commerce, without overlap with passenger-carrying transport services.

This distinction forms the backbone of the panel’s recommendation that Karnataka maintain its bike taxi ban, while simultaneously enabling gig workers to operate legally in deliveries under the Karnataka Platform-Based Gig Workers Act, 2025.

Bengaluru’s Traffic Crisis Is Central to the Rejection of Bike Taxis

One of the strongest arguments in the committee’s report links the bike taxi issue to Bengaluru’s congestion crisis. Over the last decade, the city’s population has grown by 42 percent, while two-wheelers have nearly doubled, cars have surged 80 percent, and taxis have doubled. BMTC’s bus fleet, however, has grown just 14 percent.

With nearly 70 percent of vehicles on several Bengaluru corridors being two-wheelers, the panel argues that legalising bike taxis would worsen congestion, complicate traffic enforcement, and increase emissions.

Unchecked growth in two-wheelers, including illegal bike taxis, slows junction clearance, adds to road-space inefficiency, and increases the burden on a road network already stretched beyond capacity.

Committee Rejects Claim That Bike Taxis Improve Urban Mobility

Contrary to popular belief, the report argues that bike taxis do not improve mobility. Transport-efficiency studies cited in the document show that BMTC buses remain the most cost-effective and space-efficient mode of travel.

A single bus can transport 30–40 people in the space of just a few cars, while moving the same number of commuters through bike taxis would require 30 motorcycles, each contributing to congestion. The perception that bike taxis are cheaper is also misleading—a short 2-km bike taxi ride can cost around Rs 48, whereas BMTC fares start at Rs 6 and remain economical even for longer routes.

Social Risks: Student Riders Draw Sharp Warning from Committee

The panel also highlights a less-discussed issue: the over-representation of students in the bike taxi workforce. With 18 percent of riders being college students, often from rural or economically stressed families, the report warns that motorcycles bought for commuting are now being repurposed for commercial use.

This, the committee argues, constitutes a “social atrocity”, encouraging students to skip classes and work long hours, jeopardising academic futures and long-term career prospects.

Public Transport Expansion Positioned as the Sustainable Solution

The committee argues that Karnataka should focus on strengthening public transport, not proliferating bike taxis. Bengaluru is already expanding its BMTC fleet—particularly electric buses under the PM e-Drive scheme—alongside Metro expansion, feeder networks, and improved walking and cycling infrastructure.

Allowing bike taxis, the report warns, could push Bengaluru closer to unmanageable congestion levels, while prioritising buses and Metro promises a more sustainable, scalable mobility future.

Gig Worker Welfare Must Be Through Legal Work, Not Illegal Bike Taxis

While acknowledging livelihood concerns, the report clarifies that the Gig Workers Act of 2025 offers welfare benefits for lawful gig work—not a backdoor legalisation of bike taxis. The Act cannot override the Motor Vehicles Act or legitimise operations that violate core transport statutes.

Instead, the panel recommends channeling workers into legally compliant delivery roles, ensuring they receive social-security benefits without endangering public safety or breaking the law.

• Nifty 50
• Bank Nifty
• Sensex