Rapido stops services in Maharashtra after HC directive

The High Court directed the company to suspend services by 1 pm on Friday, following which the Bengaluru-based company said it had suspended its operations.

The court will hear the matter next on January 20.

“In the interim, the Honourable Bombay High Court has accepted Rapido’s ‘without prejudice’ undertaking to discontinue operations in the State of Maharashtra, until 20 January 2023,” the company said.

The firm shared a copy of the court order with ET.

When ET tried hailing a ride in Mumbai, the app said the service was unavailable.

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Law firm DMD Advocates appeared on behalf of Rapido after the company approached the court following a rejection by transport authorities in Pune for an aggregator’s licence in relation to bike-taxis and auto rickshaws.The authority rejected the application on grounds of a lack of bike taxi policy in Maharashtra.

The High Court also slammed the government for a lack of clarity in bringing about a policy for bike-taxis.

“Nobody seems to have applied their mind to the evident advantages from various perspectives including reducing traffic congestion, pollution reduction and efficiency in transport by allowing bike rider systems,” the court observed. “At this stage, we require the government to tell us within a week when it intends to take a final decision in regard to the two-wheeler or bike taxi aggregators licence application and what arrangement it intends to make in the meantime.”

Rapido’s services – bike taxi, delivery and auto services – do not have licences to operate in Maharashtra.

Lawyers representing the company argued that it had applied for the licence in the state but had not heard back from the government.

The developments in Maharashtra are a further blow to Swiggy-backed Rapido, which has been challenging the duopoly of SoftBank-backed Ola and California-based Uber in the Indian ride-hailing market. The company has also been facing similar challenges in Karnataka due to a lack of licences.