The Karnataka State Transport Authority has granted Bengaluru-based mobility platform Rapido a five-year licence to operate cab services in the state, valid until August 2031. The licence was issued to Roppen Transportation Services Private Limited, Rapido’s parent company, under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, reports Inc42.

What does the licence cover? The approval formalises Rapido’s cab operations statewide under Karnataka’s aggregator regulations, replacing the previous ad hoc regulatory approach. This approval applies only to cab services and does not cover Rapido’s bike-taxi business, which continues to face regulatory challenges in Karnataka.

Scale of operations: Rapido operates cab services in 21 cities across Karnataka, including Bengaluru, Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Davangere, Shivamogga, Ballari, Kalaburagi, and Tumakuru. According to the company, more than 3.14 lakh drivers and 2.04 crore customers are registered on the platform in the state, with more than 69 lakh customers having used the app for at least one cab ride. These figures are self-reported by Rapido and have not been independently verified by the transport department.

Company’s stated rationale: Rapido co-founder Pavan Guntupalli stated that Karnataka is the company’s home state and a key market. He confirmed Rapido’s commitment to complying with state regulations. The company announced its inclusion in the state government’s Urban Mobility Mission, under which it will collaborate with authorities on commuter access, safety, and technology integration in urban transport.

Background: The licence represents a significant change for a company that has often been at odds with Karnataka’s transport authorities. In 2017, the Regional Transport Authority seized approximately 20 Rapido vehicles, citing their illegal operation as bike taxis without permission. In the following years, cab aggregators such as Ola, Uber, and Rapido operated at times without formal licences while legal proceedings over aggregator regulations continued. The transport department informed driver associations that it could not take action against these platforms while a High Court stay was in effect.

The bike-taxi sector remains contentious. In March 2024, Karnataka discontinued its Electric Bike Taxi Scheme 2021, citing the misuse of privately registered two-wheelers for commercial purposes, concerns about women’s safety, and the impact on state-run bus services. Rapido said the decision did not affect its general bike-taxi operations, noting that the government order did not mention the company by name and that a High Court order protects its riders from coercive action. The company has since introduced Bike Direct, a fee-free bike-taxi option that it describes as a non-commercial feature rather than a return to commercial operations.

The new cab licence does not address the ongoing dispute over bike taxis, which remains a separate regulatory issue from the cab services covered by the five-year approval.

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