Nagpur Police Book Rapido Founders for Operating Bike Taxi Services Without Govt Nod

The Rapido app's creators are facing charges in Nagpur, Maharashtra, for allegedly running "petrol-powered" bike taxi services without the proper authorisation. Founders Rishikesh S R, Pavan Guntupalli, and Aravind Sanka of Roopen Transportation Services Private Limited, which runs the Rapido app, were charged with a crime at the Sitabuldi police station.

Motor Vehicle Inspector Vishal Madhukarrao Bhovte of the Nagpur (City) Regional Transport Office (RTO) filed the official complaint on behalf of the state government, leading to the registration of the case. The RTO allegedly launched a crackdown on illicit passenger transport on June 23 as detailed in the complaint. A Rapido app ride from Ravi Bhavan to Priyadarshini Colony was reserved for INR 22 during this drive, according to the official.

Rapido Operating Without Valid Documents

The Regional Transport Authority and the Maharashtra government have not authorized Rapido to run gas-powered bike taxi services, according to Bhovte's complaint. The officer confirmed that the motorcycle in question (MH-31/GC-0850) was retrieved and thereafter taken to the RTO office for examination. Allegedly, someone was operating a private two-wheeler as a bike taxi without the proper documentation. Following the seizure, measures were implemented in accordance with the Motor Vehicles Act.

The firm was accused of promoting the use of individual vehicles to carry passengers for profit, according to the lawsuit. Therefore, endangering passenger safety, cheating transportation regulations, and draining public coffers. An officer from the Sitabuldi police station stated that a case was filed in accordance with the following provisions: the Motor Vehicles Act (sections 66, 93, 192 A, 193, and 199), the Information Technology Act (section 66 (d)), and the Bharatiya Nyaya Sanhita (BNS) (articles 318 (3), 3 (5)). Nevertheless, additional inquiry is being conducted, the official stated.

Rapido Forays into Food Delivery Sector

Startup Rapido plans to leverage its street smarts to dominate the food-delivery area, just like it did in India's bike-taxi business. The Bengaluru-based startup is putting its subscription-based meal delivery service, Ownly, out there in the hopes of competing with Zomato Ltd and Swiggy Ltd.

The business is planning to capitalise on the increasing number of Indian consumers who are angry about what they call "sticker shock". It is a combination of menu prices, platform fees, and delivery charges that can cause a bill to increase by 50% before checkout. The idea behind Rapido's move is straightforward: the market is eager to see a business that values honest pricing more than large commissions.

To kick things off, Rapido's Ownly is now collaborating with over 20,000 eateries in Bengaluru. Rapido co-founder Aravind Sanka estimates that 5,000 of these eateries are making their debut in the ecosystem of meal delivery apps. According to Sanka, most of these Bengaluru eateries are mom-and-pop shops that couldn't survive the steep discounts and huge commissions offered by food delivery services like Swiggy and Zomato.