Rapido’s licence provides regulatory certainty for its cab operations in Karnataka, where ride-hailing platforms face scrutiny over government-mandated fares
Rapido has secured a five-year licence to operate cab services in Karnataka, giving the mobility platform regulatory certainty in a key market where app-based ride-hailing companies are facing increased scrutiny over fare compliance. The licence, issued by the Karnataka State Transport Authority under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, will remain valid until August 2031, according to reports.
The approval comes as Rapido expands its cab operations beyond its established bike-taxi business. The company currently operates in 21 cities across Karnataka, with more than 3.14 lakh captains and 2.04 crore registered customers in the state, according to company data. More than 69 lakh customers have used Rapido’s cab services in Karnataka.
Regulatory Certainty
Pavan Guntupalli, Co-founder, Rapido, said Karnataka remains the company’s home state and one of its key markets. He said the licence would provide greater certainty to captains and commuters while allowing the company to operate within the state’s regulatory framework.
The development comes amid heightened regulatory scrutiny of app-based mobility platforms in Karnataka. The Karnataka Transport Department has issued show-cause notices to Ola, Uber, Rapido and Namma Yatri over alleged violations of government-prescribed fare rules.
The notices followed complaints from taxi and driver associations alleging that aggregators were charging passengers above government-notified fares.
Some associations have also alleged that platforms were calculating fares based on travel time instead of following the prescribed fare structure. The companies have been given seven days to respond to the notices.
Competition Intensifies
For Rapido, the licence strengthens its regulatory footing as competition in Karnataka’s cab market intensifies. It also provides the company with a longer-term operating framework as it seeks to scale its cab business across the state.
Meanwhile, Ola and Uber continue to face regulatory scrutiny over pricing and compliance. The contrasting regulatory developments could further shape the competitive dynamics of Karnataka’s app-based mobility market.
