The Legal Battle Over Bike Taxis in Maharashtra
On Friday, the Maharashtra State Cyber Department issued notices to Apple and Google, demanding that they remove Ola, Uber, and Rapido from their app stores due to illegal bike taxi operations. However, by Saturday, the plan was put on hold, signaling a shift in strategy.
A senior official from the Cyber Department confirmed that authorities were seeking a way to specifically halt bike taxi operations without disrupting other services offered by these platforms. "We are trying to work around a way to cease bike taxi operations without blocking all standalone ride-hailing apps," the official stated.
The initial move came after the Office of the Additional Director General of Police, Maharashtra Cyber, invoked Section 79(3)(b) of the Information Technology Act, 2000, to ask Apple and Google to “remove and disable access” to the applications from the Apple App Store and Google Play Store. However, this approach faced legal challenges, leading to a rapid retreat.
The Origins of the Conflict
This standoff did not begin recently. Rapido first launched bike taxi operations in Maharashtra in November 2020 without formal state approval. Transport Commissioner Avinash Dhakne had previously rejected the company’s application and directed it to submit a proposal for evaluation by the State Transport Authority.
In December 2022, Rapido's application for a license was rejected by Pune RTO due to the absence of a formal policy framework. In January 2023, the Bombay High Court reprimanded Rapido for operating without licenses and directed it to suspend bike taxi services in Maharashtra for a week. The state government then issued a resolution prohibiting private two-wheelers from being used as transport vehicles, citing safety concerns. The Supreme Court later rejected Rapido's challenge to the HC order and sent the matter back to the High Court. Despite these legal pressures, the platforms continued to operate.
Why the State Issued Notices Now
In September 2025, Maharashtra attempted a fresh approach by granting provisional 30-day licenses to Ola, Uber, and Rapido, allowing them a window to transition to electric bike taxis under the Maharashtra Bike-Taxi Rules 2025. These rules permitted only electric two-wheelers, painted yellow and marked with reflective "bike taxi" lettering, to operate commercially.
However, the platforms did not comply. In March 2026, the state revoked their licenses. Despite this, the platforms continued to operate. This led to the May 15 notices. State Transport Minister Pratap Sarnaik also alleged that the platforms actively shielded riders from enforcement by reimbursing RTO fines.
Between April 2025 and March 2026, enforcement teams detected 715 Rapido-linked bike taxis, 43 linked to Uber, and 18 linked to Ola. Fines worth Rs 11.85 lakh were collected during this period.
Can the State Actually Pull the Apps?
The May 15 notices were issued under Section 79(3)(b) of the Information Technology Act, 2000, which allows the government to direct intermediaries to remove unlawful content and strips them of legal protection if they fail to act.
Legal experts have raised concerns about the viability of this move. "The notices are open to challenge considering Section 79(3)(b) is typically used for removing unlawful content or links instead of directly banning an app because its service model is disputed," said tech lawyer Alay Razvi. Ashutosh Srivastava, Partner at SKV Law Offices, pointed out that "Section 69A is the only provision for blocking online services," a provision that requires Central government orders, not state cyber notices. Apart from Section 69A, platforms could also be shut down through a court order, Srivastava added. The state's pause suggests these concerns may have been taken into account.
Why Only EV Bike Taxis Are Allowed?
The EV-only rule was not the Transport Department's first choice. During a recent townhall with The Indian Express, Transport Minister Pratap Sarnaik mentioned he had initially proposed legalizing petrol-powered bike taxis too. "Despite opposition to bike taxis, I realized the importance they held in places like Goa could be replicated in Maharashtra because of the large number of single passengers," he told the newsroom. The Cabinet overruled him. Chief Minister Devendra Fadnavis, he said, held firm, arguing that platforms had the ability to build electric fleets but were reluctant due to relatively higher operational costs.
Impact on Riders
For the roughly 15,000 bike taxi riders in Mumbai alone, the crackdown has triggered panic. The Maharashtra Bike Taxi Welfare Association has written to the Chief Minister seeking a transition period of 12 to 18 months before any EV mandate kicks in. Electric bikes cost up to Rs 1.8 lakh, which, they say, is a significant burden for riders who often carry vehicle loans and have no other income. "The sudden move threatens the livelihood of thousands of riders across the state," said Amit Gawde, president of the association.
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