Following the scrapping of the Karnataka Electric Bike Taxi scheme, 2021, taxi-aggregator platform Rapido plans to recall all e-bike taxis running under their platform. According to Rapido, nearly 20 lakh rides are being operated per week within the bike taxi segment.
In an exclusive press meet, Rapido announced that they would be recalling their e-bike taxis from the road. “The Karnataka Electric Bike Taxi scheme, 2021, was scrapped on March 6. The scrapping of the policy only pertains to battery-operated vehicles. We applaud the Karnataka government for taking a significant step towards ride-sharing. We will be asking our bike taxi captains to convert (to petrol vehicles) or take necessary measures,” said Pavan Guntupalli, Co-founder of Rapido.
Rapido further highlighted the recent advisory from the Ministry of Road Transport and Highways that states that under Section 2 (7) of the Motor Vehicle Act 1988, motorcycles are to be considered as contract carriage and stated its legality of operation. Currently, Rapido operates without any license as the existing Karnataka On-demand Transportation Technology Aggregators Rules, 2016, defines cabs as a motor cab having a seating capacity not exceeding six passengers excluding the driver with a public service permit on contract.
However, The Karnataka High Court issued a stay order to Rapido in 2021 preventing the Karnataka government from taking coercive steps until the next date of hearing. The interim order issued has continued to be in force. However, the arguments of the advisory have called into question whether anyone can operate commercial bike taxis legally in Karnataka without needing a license.
While Rapido had applied for a grant of bike Aggregator’s Licence to the Commissioner of Transport, it was rejected and the company was asked to apply for a grant of Aggregator’s Licence before authority as specified in the Karnataka Electricity Bike Taxi Scheme 2021.
