Ahmedabad, January 8: In a significant move to regulate the growing bike taxi sector, the Ahmedabad Regional Transport Office (RTO) has suspended Rapido’s services for 30 days following multiple complaints from local rickshaw drivers. The decision comes after Rapido violated city transport rules by using non-transport two-wheelers for commercial operations. Meanwhile, Uber has been given a 15-day deadline to halt the use of motorcycles in its fleet, with the RTO citing similar violations.

According to a report by the Ahmedabad Mirror, the suspension of Rapido’s services comes after repeated complaints from the Ahmedabad Rickshaw Association, which raised concerns about the increasing use of non-transport two-wheelers by private aggregators. These vehicles, which are not registered for commercial use, have caused an uneven playing field between auto-rickshaw drivers and bike taxi operators. Rickshaw unions had approached the RTO, urging them to take action against these violations, as it not only threatened their livelihoods but also posed a potential safety risk to passengers. Rapido Net Loss: Swiggy-Backed Ride-Sharing Platform Registers INR 371 Crore As Net Loss in FY24.

Rapido's failure to adhere to the mandatory regulations, which include using yellow number plates and providing proper insurance for vehicles, led the RTO to intervene and issue the suspension order. In a similar vein, Gujarat Samachar reported that Uber has also been found guilty of using two-wheelers for commercial transportation despite being granted a license only for three and four-wheel vehicles. The RTO's investigation revealed that Uber was operating motorcycles in violation of aggregator rules set by the state’s transport department. Rapido FY23 Report: Bike-Taxi Startup Posts Rs 675 Crore in Losses in Last Fiscal Year, Revenue From Operations Jumps Three Times.

While Uber had been using these motorcycles for commuter transport, the company did not have the appropriate license for such vehicles, and the RTO issued a 15-day deadline for the company to cease the practice. If Uber fails to comply with this directive, it could face further penalties or suspension. The RTO's actions are seen as part of a broader effort to enforce safety standards and maintain fair competition in Ahmedabad's public transport sector. The new law, which requires auto-rickshaws to display meters starting January 1, is designed to curb irregularities in fares and operations across different modes of transport.

(The above story first appeared on LatestLY on Jan 08, 2025 08:50 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).