- Rapido secured a five-year licence to operate cab services in Karnataka until August 2031
- The licence was issued under Karnataka's On-Demand Transportation Technology Aggregators Rules, 2016
- Rapido operates in 21 Karnataka cities with over 3.14 lakh captains and 2.04 crore customers
Rapido has secured a five-year licence to operate cab services in Karnataka, strengthening its position in one of India's most competitive app-based mobility markets.
According to reports, 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.
The approval gives Rapido regulatory continuity as it expands its cab business beyond its traditional bike-taxi operations.
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The company currently operates across 21 cities in Karnataka and has more than 3.14 lakh captains and 2.04 crore registered customers in the state, according to the company. More than 69 lakh customers have used Rapido for cab rides in Karnataka.
Rapido co-founder Pavan Guntupalli said Karnataka remains the company's home state and one of its most important markets. He said the licence would provide greater certainty for captains and commuters while allowing the company to operate within the state's regulatory framework.
The development comes at a challenging time for major ride-hailing platforms. 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 notified fares.
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Some associations also alleged that platforms were calculating fares using travel time rather than strictly following the government's prescribed fare structure. The companies have been given seven days to respond.
For Rapido, the licence provides a significant regulatory advantage as competition in Karnataka's cab market intensifies.
For Ola and Uber, meanwhile, the move comes amid increasing regulatory scrutiny over pricing and compliance, potentially giving Rapido another opportunity to expand its footprint in the state.
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