After Karnataka, Maharashtra Targets Bike Taxis: Why Uber And Rapido Are in Trouble Again

After the high-profile crackdown in Karnataka, it’s now Maharashtra’s turn to pull the brakes on bike taxis. The Mumbai Police recently registered formal cases against Uber and Rapido, accusing the platforms of illegally operating two-wheeler taxis without the necessary state permissions.

The police action followed after Maharashtra RTO officials filed a complaint against both Rapido and Uber for illegally operating bike taxis without permission. RTO inspectors booked dummy rides on both Uber and Rapido and found that they could book bike taxis, which were running private number plates but were being used for commercial carriage.

This latest move could signal a wider shift in how state governments deal with what has become a grey-zone operation in urban transport.

The Core Issue: Legality vs Demand

Bike taxis have quietly grown into an everyday fixture in cities like Mumbai, Bengaluru, Hyderabad and Delhi. Whether to beat traffic, reach the metro faster or cut commuting costs, thousands of riders rely on these quick rides.

The problem, however, lies in the fine print of transport regulations. Two-wheelers with white number plates are classified as private vehicles, meant strictly for personal use. Commercial use of such vehicles for ferrying paying passengers is illegal under the Motor Vehicles Act.

Both Uber and Rapido have been operating under this shadow, using white-board bikes and app-based bookings to carry passengers. This isn’t the first time the issue has surfaced, but Maharashtra’s latest action has raised the stakes. Around 170 cases were reportedly filed, largely against individual riders and the companies facilitating these trips.

Why Maharashtra’s Action Matters

This isn’t just another local dispute over licensing. Mumbai is one of the country’s most densely packed cities, and the demand for nimble, affordable last-mile solutions is intense. The crackdown comes at a time when conversations about regulating app-based mobility solutions are picking up across multiple states.

The move could set the tone for other large urban centres still allowing such services to operate unchecked. If Mumbai’s police continue to penalise riders and pressure the platforms, it might prompt similar actions in Pune, Nagpur and Thane. And that could escalate into a nationwide issue for bike taxi operators unless there’s a clear legal framework introduced soon.

What the Companies Say

Uber and Rapido have, in the past, claimed they are simply technology providers connecting riders with drivers. They argue that they don’t own the vehicles and that state laws should evolve to accommodate newer, more efficient modes of transport. While this sounds reasonable in theory, it doesn’t hold much water in a courtroom if the current law prohibits private vehicles from carrying passengers for money.

To bypass restrictions, platforms like Rapido have tried rebranding bike taxis as “parcel delivery” services. In practice, this means the rider is supposedly carrying a parcel rather than a person. The passenger becomes the "sender" who rides along with their own parcel. It's a clever workaround, but not one that regulators are willing to accept.

Pressure from Other Stakeholders

Auto-rickshaw and taxi unions are watching these developments closely, and many have been vocal in demanding stricter enforcement. Their argument is simple: if they pay commercial taxes, insurance, fitness fees and adhere to permit requirements, why should bike taxis get a free pass?

In fact, part of the reason state governments are cracking down now is because of growing pressure from these unions. In Karnataka, lobbying by autorickshaw unions was instrumental in forcing the government to act. Maharashtra seems to be following a similar path, using the existing legal framework to assert control before things get out of hand.

What Comes Next?

The courts have already told some states to draft specific rules for bike taxis, but progress has been slow. Until a dedicated category for two-wheeler taxis is created within the Motor Vehicles Act or by individual states through policies and permits, the tension will continue.

Consumers may find this crackdown inconvenient, but it also exposes a larger issue. India’s urban transport needs are evolving faster than the laws meant to govern them. There’s no denying the usefulness of bike taxis, especially in congested cities. But until regulatory clarity emerges, both riders and operators will continue to be caught in a legal limbo.

For now, Maharashtra’s message is clear. If you’re operating a bike taxi without official approval, don’t count on the state looking the other way.