Rapido files application to operate bike taxis in Karnataka

Mobility startup Rapido said on Tuesday that it had filed an application with the transport authority in Karnataka for a licence to operate its bike taxis in the state.

The state government had earlier confiscated Rapido’s bike taxis and imposed fines on its drivers though there is as yet no clear regulation on the operation of motorcycle taxis.

“Bike taxis were a new concept; there was no existing provision through which we could apply for a license. But in May, the Karnataka High Court directed us to submit our application to the transport department," said Aravind Sanka, cofounder, Rapido.


The company is hopeful of getting a licence soon, he said.

A state government official, however, said the high court has only directed Rapido to file an application and its approval is not guaranteed.

“It is not compulsory. We have to make a decision on whether we should allow it (bike taxis) or not. That is a policy decision…,” the person said.

The company hopes to hire 100 women drivers in Bengaluru by the end of 2022. It currently has about 20.

“With the recent order by the Karnataka High Court, ambiguity regarding bike taxi legality is now set to resolve. Interested candidates can confidently join Rapido as a Captain to earn an income utilizing their bikes as taxis, without any fear of implications and objections,” it said in a statement on Tuesday.

Sanka said Rapido is on a path to recovery after the second Covid-19 wave.

“In terms of traction, it took only 20 days for us to bounce back, whereas it took us six months to bounce back from the first wave (of the pandemic),” he said.

Amid the pandemic, Rapido announced partnerships with Zomato, Swiggy and BigBasket, as people stayed at home and rental bike start-ups got increased business from ecommerce companies, especially food and grocery delivery firms.

The mobility sector clocked around 78 million rides in March, 69% of what it had recorded in the pre-Covid-19 months last year, a recent report by internet-focused consulting firm RedSeer Consulting showed.

Auto rickshaws showed the highest recovery rate, at 25 million rides.

App-based bus aggregator Shuttl has been severely affected by the second wave and was forced to lay off some employees, its CEO tweeted last week.