Rapido is not earning money from bike taxis in Karnataka
What's the story
Roppen Transportation Services, the company behind Rapido, has informed the Karnataka transport department that it is only a facilitator for bike taxi services in the state. The clarification comes as Rapido continues to operate bike taxis in Karnataka despite ban, but it is important to note that they are doing so in a non-commercial, facilitative capacity. The company said it had voluntarily decided to change its business model temporarily due to regulatory concerns and ongoing litigation before the High Court.
Market changes
Rapido's 'Bike Direct' feature
Rapido has launched a feature called 'Bike Direct,' allowing users to book bike taxis. This comes as its competitors, Uber and Ola, have withdrawn services. Uber has removed 'bike taxi' option from its app, while Ola has suspended the service again after a brief resumption.
Legal clarification
High court's clarification on bike taxi operations
On August 22, the Karnataka HC clarified that it had not allowed bike taxi aggregators to operate. The court also stated that the state was free to act without harassing bike owners. State Transport Minister Ramalinga Reddy said, "The High Court has given us a month to decide whether to frame a bike taxi policy. The court has not granted permission to operate bike taxi services."
Operational shift
Rapido's operational model in Karnataka
Rapido has clarified that its new operational model is "strictly limited to lead generation for the two-wheeler mobility segment, without deriving any financial profit from operations on the Rapido app." The company said it was acting as a "lead generator or facilitator, connecting independent riders with customers while neither operating, managing nor controlling the provision of any transportation service."
Revenue neutrality
Non-commercial arrangement until next hearing
Rapido has committed not to charge any commission, a platform usage fee, subscription, convenience charge or any other monetary consideration from riders or customers in Karnataka. The company said all connections made via its platform during this interim period would be non-commercial and revenue neutral. This arrangement is voluntary and stems from public interest until the next hearing or further orders of the HC in this matter.