There is enough for everyone, autorickshaws need not monopolise Bengaluru’s mobility space: Rapido

Interestingly, Rapido also welcomed the Karnataka government’s decision to withdraw the policy on electric Bike Taxis and said it would foster “a conducive environment for innovation and growth within the ride-hailing sector”.

“With over 10 lakh bike taxi riders and around 20 lakh bike rides happening every week, it’s evident that bike taxis play a crucial role in Karnataka’s transportation ecosystem. This data highlights the significant demand and reliance placed on bike taxis for convenient and efficient mobility solutions across the state. Rapido expresses confidence that the transport department of the government 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 Ministry of Road Transport and Highways related to the grant of contract carriage permit to two-wheelers,” said Pavan Guntupalli, co-founder of Rapido.

Guntupalli also said that Rapido was operating two-wheeler taxi services in Bengaluru as per the provisions of the Motor Vehicles Act. “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. This move is not only crucial for the growth of the sector but also ensures compliance with the existing provisions of Motor Vehicles Act 1988 and Motor Vehicle Rules,” he added.

The Rapido executive was referring to the central government’s recent advisory to the state governments that contract carriage permits be issued for motorcycles in line with the provisions of the Motor Vehicles Act. The advisory stated that based on the definition of “contract carriage” provided in section 2(7) of the Motor Vehicles Act, motorcycles fall within the law’s ambit.

Rapido’s chief legal advisor, Shantanu S, said, “A division bench of the Karnataka High Court in 2021 passed an order that the existing legal framework of the Motor Vehicles Act permits motorcycles under contract carriage and that Karnataka transport department will have to grant the permission for the same. However, the government failed to implement the amendment and when we filed our representations for operations, it was rejected by the state government.”

He added, “The wider framework of the MV Act and the central motor vehicle rules is designed and implemented by the central government. The on-ground implementation is at the state level and the aspects of taxes and revenue, among others, are decided by the state.”

According to Guntapalli, Rapido is licensed to operate bike taxi services in states such as Assam, West Bengal, Bihar, Jharkhand, Chandigarh, Meghalaya and Madhya Pradesh, while the company has applied for licences in all the states.

Rapido stated that the licences in some of these states were obtained from respective transport authorities based on ministry guidelines, whereas in other states, like Meghalaya and Jharkhand, they were obtained based on the regulatory framework that existed before the guidelines.