Rapido, the bike-taxi operator, has confirmed that it has suspended operations in Maharashtra from 1 pm today (January 13) until January 20 on the instructions of the Bombay High Court. All services, including food delivery, autorickshaws, and bike taxis, are expected to be suspended. The Bombay High Court has required confirmation of the same by 1:15 pm.
Bench: Rapido confirms that the App is now inoperative on Maharashtra. For the convenience of customers who may have booked rides before 1 PM today, the petitioner may fulfill those obligations. This is only for the convenience of those consumers.#BombayHighCourt #Rapido
— Live Law (@LiveLawIndia) January 13, 2023
The decision came after the Bombay High Court ordered the suspension, citing the company’s failure to disclose material facts, including the fact that it lacks a licence to operate and has been functioning illegally.
The High Court also slammed the Maharashtra government for its uncertainty in framing a policy permitting bike taxis in the state, and said it has to clarify its stand one way or the other. The Bombay High Court division bench of Justices Gautam Patel and S G Dige recommended that the Maharashtra government seriously explore allowing bike taxi services in the state. The court had earlier said that the State cannot remain in limbo in the matter, and a decision has to be made.
The court was hearing Rapido’s plea challenging the state’s refusal to grant licenses to entities like it.
Appearing for the government, Advocate General Birendra Saraf on Tuesday told the court that as on date, bike taxis are not allowed to ply, as the government has not issued any no policy or guidelines for the same.
The AG insisted that if the petition is to be entertained, the petitioner is required to undertake that it will shut down its services first. The AG also informed the court that a committee has been formed to investigate the development of guidelines for bike taxis in the state. He also stated that prosecution against organisations such as Uber that operate bike taxis had begun.
“The government has in fact issued a show cause notice to one such aggregator company for plying bike taxis without licence. A carriage licence is required in such cases,” Saraf said.
“There has to be a comprehensive policy equal to all. Every company has to be on the same page. Either everyone is allowed to ply or everybody stops. In the absence of policy or safety guidelines, no such service should be allowed to ply. Plying under the radar cannot be allowed,” the court said.
The petitioner also alleged that the state is discriminating against it as other cab services like Uber are allowed to continue offering similar bike services. When the petitioner said that it has been granted licences in some states, the court asked it to submit the terms under which those licences have been granted. Two states have granted licences and two other states have granted provisional licenses for bike services.
Earlier in a hearing in the case, the High Court had expressed displeasure over the state government’s refusal to grant licences to Rapido and similar services, saying that two-wheeler tax services have various advantages like reduction in traffic congestion, pollution reduction and efficiency in transport. “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. We expect that these will be made subject to certain safety requirements that must be followed but that is hardly a reason for rejecting the entire proposal in this fashion,” the court had said.
