According to a report by ET, the bike-hailing company has agreed to shut down all its services. Rapido’s services include two-wheeler passenger travel booking, two-wheeler parcel delivery and auto bookings. The company will have to keep its services suspended till January 20.
Why Rapido has suspended its services in Maharastra
Earlier this week, the Bombay High Court asked the Maharashtra government about its “uncertainty in framing a policy permitting bike taxis in the state.” The high court also ordered the state government to clarify its stand “one way or the other.”
The state government refused to issue a bike taxi aggregator licence to Roppen Transportation Services Private Limited, the operator of Rapido bike taxi services. The refusal was communicated to the company on December 29, 2022. The bench that ordered Rapido to suspend its services was hearing a petition filed by the company against the refusal of the licence.
In October 2022, Karnataka Transport Department also issued notices to including Ola, Uber and Rapido. The department ordered the cab-hailing platforms to halt their autorickshaw services for allegedly charging extra money. Bike-hailing startup Rapido denied these allegations and claimed that these charges are “completely false”.
A top executive of Rapido in December 2021 said that the demand for bike taxi services has increased in recent times. The official also added that the company’s bike taxi segment contributes 78% of the overall business.
Rapido’s introduced its ride-hailing services in the bike taxi segment in India in 2015. By 2022, the company was successful in creating a customer base of over 15 million users.
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