Centre's guidelines on bike taxis not binding, will impact drivers: Karnataka Transport federation

Bengaluru: The Motor Vehicle Aggregator Guidelines, 2025, will financially burden passengers and drive street-hailed autos and taxis out of the competition, according to the Karnataka State Federation of Transport Associations. 

The guidelines, released by the Ministry of Road Transport and Highways on July 1, provide a regulatory framework for state governments to license and regulate ride aggregators. 

Clause 23 specifies that the state government may allow aggregation of non-transport motorcycles for passenger journeys as shared mobility. 

Rapido and Uber have welcomed the guidelines, interpreting them as supporting bike taxis. 

Karnataka banned bike taxis on June 16 in accordance with a high court ruling. Operators have filed an appeal. 

The federation, which has opposed bike taxis, claimed on Thursday that the guidelines are "advisory in nature and not binding by law". 

Clause 23 "undermines the federal structure by attempting to override the state government's authority on transport matters, especially in setting policies and regulations for public safety, pricing and licensing", it said. 

Clause 17, which allows ride aggregators to charge at least 50% lower than the base fare and a maximum dynamic pricing of two times the base fare, "violates Section 67 of the MV Act, which empowers states to fix rates", it added. 

"Auto and taxi drivers, who already follow the fare structure fixed by the state, will face unfair competition, leading to economic distress and loss of livelihoood," the federation said. 

It added that it would make detailed representations to Union Minister of Road Transport and Highways Nitin Gadkari and Karnataka Transport Minister Ramalinga Reddy.