Rapido revival in sight: Central guidelines set to reignite bike taxi services in Delhi and Maharashtra – ET Auto


Rapido has over 60% market share in Indian bike taxi space.

The Ministry of Road Transport and Highways (MoRTH) has issued guidelines clarifying the legality of bike taxis in India, potentially paving way for their return in key markets like Delhi and Maharashtra. The advisory explicitly states that motorcycles fall within the definition of contract carriages as per the Motor Vehicles (MV) Act, 1988.

Despite facing hurdles in Delhi and Maharashtra, where regulatory ambiguity led to a ban on bike taxi operations, other states like Goa, Rajasthan, and Uttar Pradesh have embraced the service. The latest advisory aims to standardize regulations and protect bike taxi riders from legal complications.

The central government’s move is expected to resolve the confusion surrounding the operation of bike taxis, providing a clear framework for states to accept and process applications for contract carriage permits for motorcycles. This development is particularly crucial for bike taxi operators like Rapido, which faced challenges in obtaining licenses in certain states.

Rapido, a leading player in the Indian bike taxi space, has expressed optimism about the guidelines, emphasizing that commercial operations by two-wheelers have always been permitted under the MV Act, 1988. The company, with over 60% market share, looks forward to resuming operations in all territories as states align with the central guidelines.

The challenges faced by bike taxi operators, including Rapido, stem from the lack of implementation and policies in some states. The absence of a clear regulatory framework has resulted in refusals for commercial permits and subsequent penalties for non-compliance. The impact of the ban has not only affected revenue but also compromised over 1.5 lakh employment opportunities every month.

Rapido plans to maintain its leadership position by focusing on innovation, enhancing customer experience, and expanding services to new markets. With a presence in 90 cities and 20 states, the company sees vast untapped potential for bike taxis in the evolving Indian economy.

The bike taxi industry, seen as a solution for affordable and faster transportation, is poised for growth, with Rapido actively contributing to first and last-mile connectivity. The central guidelines are expected to reignite bike taxi services, addressing the regulatory vacuum in certain states and propelling the industry forward.

  • Published On Mar 8, 2024 at 05:13 PM IST

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