Rapido was instructed to suspend all of its two-wheeler passenger, two-wheeler parcel and vehicle services in Maharashtra by Friday at 1 pm after the Bombay High Court threatened strict punishment.
Rapido was given a court order after failing to disclose important information such as material facts and license.
Roppen Transportation Services Private Limited (Rapido) was given a warning by a division bench of Justices Gautam Patel and S G Dige to either stop operating its bike taxis right away or face permanent exclusion from receiving any licences from the state. The bench emphasised that the business cannot operate its services in an unregulated way in the absence of a licence.
The Karnataka government asked that three-wheeler services be stopped in Bengaluru in October 2022, blaming SoftBank-backed Uber, Ola, and Rapido for overcharging and harassing their customers.
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In order to expand its company, Rapido announced its intention to hire two lakh additional bike drivers when it launched its bike-taxi service in Mumbai in October.
In November of last year, Rapido was sent a notice from the Mumbai RTO ordering it to stop operating right away because the state government had not yet given it the authorization to do so.
Advocate General Birendra Saraf had told the court that the company's petition ought to be heard only after they discontinue their services.
The bike taxis caused a walkout last month close to the city's RTO, according to the auto-rickshaw union in Pune, which claimed that they were operating "illegally" and harming their business.
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The auto union demanded that the RTO department permanently end the use of bike taxis.
The government has established a committee to investigate the problem and perhaps create rules for bike taxis, Saraf continued.
