Karnataka clarifies bike taxi ban won’t affect e-commerce and food delivery, says Minister Ramalinga Reddy

Karnataka Transport Minister Ramalinga Reddy clarified that the state's bike taxi ban applies only to passenger transport and will not impact e-commerce or food delivery services, easing concerns of gig workers and delivery partners. 

Bengaluru: Following the state-wide bike taxi ban, gig workers and entrepreneurs have expressed concern over the potential implications for using private vehicles in e-commerce and quick-commerce deliveries.

Centre flags use of private vehicles in quick commerce 

On June 10, the Union Ministry of Road Transport and Highways raised concerns about gig workers using private vehicles for e-commerce and quick-commerce platforms. The ministry cited issues such as traffic violations, public safety risks, and growing urban congestion. Reports have also surfaced regarding insurance, tax, and vehicle registration complications.

The ministry has advised states and union territories to take strict and timely action to safeguard public safety within their respective jurisdictions.

Fear of restrictions grows among gig workers 

With the Karnataka government already banning bike taxis, the central government's advisory has triggered anxiety among gig workers and entrepreneurs. They fear possible further restrictions on using personal vehicles for commercial deliveries.

If gig workers are required to register their vehicles commercially or face fines for using personal bikes to deliver food, groceries, and parcels, it could significantly impact their livelihoods. This move may also challenge the operations of the e-commerce and quick-commerce sectors in the state.

Quick commerce industry may face investment hurdles

A crackdown on gig-based delivery operations could deter investors and startups, ultimately affecting Karnataka's thriving tech and logistics ecosystem. The state has a large population of gig workers who depend on personal two-wheelers as their primary source of income. Restricting this could leave thousands of youth without employment.

Gig workers urge clarity from the government 

In response to growing concerns, gig workers have urged the state government to clearly define its position on the matter.

Transport minister clarifies delivery vehicles not affected

Transport Minister Ramalinga Reddy clarified that the ban applies only to using bikes for passenger transport, not for e-commerce deliveries.

“The government has only prohibited carrying passengers on bikes. The state government has not imposed any restrictions on e-commerce or quick commerce deliveries,” — Ramalinga Reddy, Transport Minister