Rapido to suspend its service in THIS state up to January 20; Here's WHY

New Delhi: After the Bombay High Court threatened harsh punishment, Rapido declared that it will suspend all of its operations in Maharashtra. Rapido was instructed to stop operating all of its two-wheeler passenger, two-wheeler parcel, and vehicle services in Maharashtra by Friday at 1:00 p.m. According to a report, the corporation was given a court order after failing to reveal important information and demonstrate authorization.

The state government's decision to deny bike taxi aggregators a taxi aggregator licence was being contested by Rapido in court. The Karnataka government requested that three-wheeler services be discontinued in Bengaluru in October 2022, citing Uber, Ola, and Rapido—all of which are supported by SoftBank—for overcharging and harassing its patrons. (Also Read: No more WFH! IT firm TCS calls its employees to office)

Rapido debuted its bike-taxi service in Mumbai in October and stated that it intended to add two lakh bike drivers to its team in order to grow its business. Rapido received a notification from the Mumbai RTO in November of last year demanding it to cease operations immediately since the state government had not yet granted it permission to do so. (Also Read: 1% of the US population, Indian-Americans pay 6% of taxes: Congressman)

The bike taxis, which the auto-rickshaw union in Pune said were operating "illegally" and hurting their business, sparked a strike last month near the city's RTO. The RTO department was required to put a permanent halt to the bike taxis by the auto union.

In order for the case to be considered, the petitioner must stop offering its services, according to Advocate General Dr. Birendra Saraf. Additionally, the Advocate General informed the court that a committee had been constituted to investigate the possibility of creating regulations for bike taxis in Maharashtra.