Karnataka grants Rapido 5-year cab license, but bike-taxi dispute continues

The Karnataka State Transport Authority has issued a five-year license to Rapido, allowing the mobility platform to operate cab services across the state until August 2031. The license was granted to Roppen Transportation Services Private Limited, Rapido's parent company, under the state's aggregator rules from 2016.

This approval formalizes Rapido's car-hailing operations within Karnataka's regulatory framework. Crucially, the license exclusively covers four-wheeled taxi services and does not extend to Rapido's bike-taxi business, which remains a contentious issue with the transport authorities.

Rapido operates car-hailing services in 21 cities within Karnataka. The company states it has over 314,000 drivers and 20.4 million customers in the state. Co-founder Pavan Guntupalli emphasized Karnataka's importance as the company's home state and reiterated its commitment to complying with local regulations.

The new license marks a shift for Rapido, which has had a history of clashes with Karnataka's transport regulators. In 2017, authorities seized Rapido vehicles for operating as illegal bike taxis. The broader regulation of ride-hailing aggregators has been in flux for years, with court stays at times limiting regulatory action.

The dispute over bike taxis persists. In March 2024, Karnataka discontinued its electric bike taxi scheme due to concerns over commercial use of private vehicles, safety, and competition with state bus services. Rapido has sought to navigate these challenges, introducing initiatives like 'Bike Direct', which it describes as a non-commercial offering.