Rapido’s new features violate Karnataka High Court orders and the Karnataka Motor Vehicle Act.
Ride-hailing platform Rapido’s premium auto rickshaw service Rapido Auto Plus’s fares are 25-30 percent above the High Court mandated fare for regular auto rickshaws. The service promises guarantee rides with no cancellations, and is priced higher than Rapido’s regular auto rickshaw service.
Sushanth V.A, Advocate at Karnataka High Court said, “Rapido’s new features have clearly violated the Karnataka High Court orders and Section 67 of the Karnataka Motor Vehicle Act, 1989. These could be interpreted to apply to ride-hailing platforms that charge passengers a premium for guaranteed rides with no cancellations. This is because the passengers are essentially paying for a service that is not provided by regular auto rickshaws.”
A Rapido spokesperson said, “Auto Plus is designed to offer users a more reliable and convenient way to travel around Bengaluru. With Auto Plus, users can book a ride and be confident that the driver will not cancel it, even during peak hours.”
Rapido is charging a minimum fare of Rs. 71 for Auto Plus rides, which is higher than the Rs. 46 minimum fare for our regular auto rickshaws.”
The company’s spokesperson added, “the higher fare is necessary to incentivize drivers to participate in the Auto Plus program and to ensure that they are able to provide reliable service.”
Venkat A., frequent Rapido user said, “I am already used to the occasional ride cancellation, on Rapido and I am not willing to pay more money to avoid it. I also believe that the guaranteed rides with no cancellation promise is simply not realistic. There will always be times when drivers need to cancel rides, and Rapido cannot control this.”
Another commuter said, “In the additional benefit section of Rapido Auto Plus it was mentioned that autos with seat belts would be provided; I did not see any auto with seat belts and even if they get the seat belts then what about the safety of the people who can’t afford this expensive Rapido feature?”
The launch of Auto Plus comes at a time when ride-hailing companies are facing increasing scrutiny from regulators over issues such as driver exploitation and surge pricing. In October 2022, the Karnataka High Court banned ride-hailing platforms from charging more than 10 percent above the auto fare fixed by local authorities.
Advocate Sushanth added, “Riders can file a contempt of court case against them since they are charging higher fares than the auto fare fixed by the Karnataka government. This is because the Karnataka High Court has explicitly banned ride-hailing platforms from charging more than 10 percent above the auto fare fixed by the Karnataka government.”
Significantly, last year, the transportation authorities took strong action against app-based ride-hailing platforms like Ola and Uber for their high pricing and introduced a minimum fare of Rs 35, compared to the previous Rs 100 they were charging.
However, app-based aggregators continue to get customers to pay more for facilities like no cancellations. Namma Yatri, an app launched by the state government also suggests riders to offer tips to the drivers so that their rides are booked faster.
Venkat added “ever since Namma Yatri got launched, I prefer to use it over Rapido since it is cheaper and books faster.”
