CCI Closes Complaint Against Rapido Over Alleged Use Of Private Vehicles For Bike Taxi Services
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Observing that allegations relating to vehicle permits, tax remittances, and other regulatory compliance issues fell outside the scope of competition law, the Competition Commission of India has rejected a complaint filed against Rapido over claims that the ride-hailing platform distorted competition through its bike-taxi and pricing practices.
A coram of Chairperson Ravneet Kaur and Members Anil Agrawal, Sweta Kakkad, and Deepak Anurag passed the order on information filed by Deep Chandra Pande, Director of HitoHit Solutions (OPC) Private Limited, a licensed aggregator under Uttarakhand transport rules.
“With regard to the allegation of plying of vehicles without necessary permits, the Commission is of the view that the same falls outside the domain of competition law and a separate legislation, i.e., the Motor Vehicles Act, 1988, is in place to deal with the allegations in this regard.”
Pande alleged that Rapido deployed private (white-plate) two-wheelers for commercial hire without required permits, allowing it to avoid the higher costs associated with commercial vehicle permits, insurance and taxes, offer ultra-low fares, rapidly expand its operations and create barriers for competitors operating compliant fleets.
He also alleged that Rapido's zero-commission model, opaque GST and State Transport Authority levy remittance practices, transfer of passenger pickup costs to drivers, and dispatch of e-rickshaws against auto bookings distorted competition and created an unfair competitive advantage. The informant further alleged predatory pricing.
The Commission held that allegations relating to GST and State Transport Authority levy remittances, driver compensation practices, and alleged deployment of e-rickshaws in place of autos also fell outside the scope of competition law.
“With regard to the nature of these allegations, the Commission is of the view that delineation of the relevant market and subsequent assessment of dominance and abuse may be dispensed with. Moreover, on perusal of the rate card of the OP and the maximum passenger fare fixed by the Transport Authority, as tabulated below, it appears that the OP does not charge predatory prices.”
Finding no prima facie case, the Commission closed the information and dismissed the application seeking interim relief.