Karnataka scraps electric bike taxi scheme

Bengaluru: In a surprise decision, Karnataka has banned its electric bike taxi scheme launched nearly three years ago.

An official notification issued on Wednesday cited "blatant violations" for scrapping the Karnataka Electric Bike Taxi Scheme 2021, noting that private two-wheelers (white-board registration) were being used as electric bike taxis.

It also cited issues related to women's safety, law and order, and the impact on government bus operations for scrapping the scheme.

The Transport Department introduced the scheme in July 2021 to regulate bike taxis, which have become the transport of choice for many last-mile travellers.

In December 2022, the Transport Department issued licences to two companies BluSmart and Bounce to operate electric bike taxis. The licensee must have its own fleet of electric bike taxis to operate under the scheme. However, neither company is said to be operating electric bike taxis.

At the same time, auto and cab drivers have been livid at "illegal" (white-board) bike taxi operators for snatching their business. Auto drivers have violently attacked bike taxi captains, leading to law and order problems. In some cases, women passengers have accused bike taxi captains of sexual harassment.

The notification specified that a committee headed by the managing director of Bangalore Metro Rail Corporation Limited (BMRCL) had found that the electric bike taxi scheme was ineffective.

The notification is unlikely to affect the operations of bike taxi (white-board) services offered by ride-hailing firms such as Rapido, Uber and Ola. The High Court of Karnataka has restrained the government from taking any coercive action against bike taxis. The Transport Department has been trying to get the stay vacated but hasn't succeeded.