Confusion around Karnataka govt's withdrawal of e-bike taxi scheme: Rapido

Rapido pointed out that recent order issued by the state government does not mention banning Rapido or any other aggregator operating under the protection of the high court order

Rapido on Tuesday said there is confusion surrounding the Karnataka government’s withdrawal of the electric bike taxi scheme as well as inaccurate information circulating on social media platforms.

The company added that the recent order issued by the state government does not mention banning Rapido or any other aggregator operating under the protection of the high court order.

“We clarify that the electric bike taxi scheme notified in 2021 and now withdrawn in 2024 only pertains to the grant of licence for operating electric bike taxis. This fact is self-evident under Clause 1(4), which specifically mentions that this scheme shall only apply to battery operated electric motorcycles or electric bikes,” said the company.

At the same time, the firm extended appreciation to the state government for its recent decision to withdraw the electric bike taxi policy, notified in 2021. It said this significant move reflects the government's commitment to fostering a conducive environment for innovation and growth within the ride-hailing sector.

However, Rapido said it would like to shed light on the legal status of its operations and other similarly-placed aggregators operating two-wheelers as bike taxis in Karnataka. The issue of the operation of bike taxis has been pending with the high court since 2021.

The company said that the high court had passed an interim protective order in favour of Rapido back in 2021. It said those specific observations directed the state government not to take any coercive steps against the aggregator or its riders operating in Karnataka. This protective interim order remains subsisting to date.

The Ministry of Road Transport and Highways (MoRTH), on January 22, issued an advisory clarifying that motorcycles fall within the definition of contract carriages, according to Section 2(7) of the Motor Vehicles (MV) Act, 1988.

“We want to assure our customers and captains that Rapido will continue to operate seamlessly within Karnataka. Rapido is upholding the interim order from the high court, which recognises the legality of Rapido's operations and reinforces our resolve to continue serving the people of Karnataka,” said Pavan Guntupalli, co-founder of Rapido.

He said with over 1 million bike taxi rides happening in Bengaluru alone, it's evident that bike taxis play a crucial role in Karnataka's transportation ecosystem. This data highlights the significant demand and reliance on bike taxis for convenient and efficient mobility solutions across the state.

Rapido expressed confidence that the transport department of Karnataka will adopt a more comprehensive approach, in line with the provisions of the Motor Vehicles Act and the recent advisory issued by the MoRTH on grant of contract carriage permit to two wheelers.

“We firmly believe that the revised approach will facilitate the grant of contract carriage permits to two wheelers and bike taxis, aligning Karnataka with states that have successfully implemented similar models,” said Guntupalli.

The company believes that a collaborative effort between the government and industry stakeholders can lead to the development of a robust regulatory framework. This would address the unique dynamics of the ride-hailing sector.