The Delhi High Court (HC) warns Rapido, instructing the ride-hailing platform to make its app accessible to persons with disabilities within four months or cease operations in India. This directive comes in response to a petition filed by two visually impaired individuals who highlighted significant accessibility issues in the app. An audit report submitted to the court revealed 170 accessibility errors, including 81 major failures, which render the app difficult to use for specially-abled persons. The court has also summoned the Joint Secretary of the Ministry of Road Transport and Highways to explain why such platforms are allowed to operate without complying with accessibility laws. Previously, Rapido acknowledged these issues and pledged to improve its app but failed to take adequate steps. If the company does not resolve these issues within the given timeframe, it will have to exit the Indian market.
1. Introduction to Rapido’s Business Model
1.1 Founders and Background
Rapido was founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka. The company, headquartered in Bengaluru, started with bike taxi services, aiming to provide affordable and efficient transportation in Indian cities. Over the years, it expanded its operations, adding auto-rickshaw and cab services.
1.2 Working and Revenue Model
Rapido operates as an app-based transport aggregator, connecting users with two-wheeler and four-wheeler drivers for ride services. The platform charges a commission on each ride, making its revenue through ride fees and surge pricing. Additionally, Rapido offers peer-to-peer delivery services under “Rapido Local.”
1.3 Funding Background and Financials
In August 2024, Rapido entered the unicorn club after raising $120 million from WestBridge Capital. Despite achieving unicorn status, the company reported a net loss of INR 674.5 crore in FY23, a 50% increase from INR 439 crore in FY22. However, its operating revenue grew to INR 443 crore from INR 144.8 crore during the same period.
2. Delhi HC warns Rapido on Accessibility Issues
2.1 Petition Against Rapido
Two visually impaired individuals, Amar Jain and Dipto Ghosh Choudhary, filed a petition against Rapido, highlighting serious accessibility flaws in the app. Their advocate, Rahul Bajaj, presented an accessibility audit report that documented 170 errors, including 81 major failures, under Web Content Accessibility Guidelines (WCAG) Level A.
2.2 Key Findings of the Accessibility Audit
- 170 accessibility errors at WCAG Level A.
- 81 major failures that make the app difficult for visually impaired users.
- Screen reader issues that hinder navigation for specially-abled persons.
2.3 Delhi High Court’s Response
The High Court warns Rapido for not complying with accessibility norms despite existing laws like the Rights of Persons with Disabilities Act, 2016. The court questioned how the app was allowed to function without addressing these issues and gave Rapido four months to comply or exit the Indian market.
2.4 Government’s Role in Accessibility Compliance
The court also summoned the Joint Secretary of the Ministry of Road Transport and Highways to explain why ride-hailing platforms are not monitored for accessibility compliance before launch. The official must appear in the next hearing and present steps taken by the government to enforce these norms.
3. Industry Impact and Startups’ Responsibility
3.1 Implications for Ride-Hailing Startups
This ruling sets a precedent for all ride-hailing platforms in India. Companies like Ola and Uber might also face scrutiny over accessibility compliance.
3.2 Legal Compliance for Digital Platforms
Startups must ensure that their apps meet accessibility standards before launch to avoid legal challenges and potential shutdowns.
3.3 Consumer Expectations and Brand Reputation
Ensuring accessibility is not just a legal obligation but also a necessity for building a brand that is inclusive and user-friendly. Startups that fail in this aspect risk losing customer trust.
4. Rapido’s Response and Challenges
4.1 Rapido’s Argument
Rapido defended itself by stating that it is a small startup with limited financial resources to address accessibility concerns. However, the court dismissed this argument, emphasizing that all businesses must comply with accessibility norms.
4.2 Steps Rapido Must Take
- Implement WCAG Level A compliance for all users.
- Conduct third-party accessibility audits regularly.
- Introduce AI-powered voice navigation and screen reader-friendly UI.
5. Learning for Startups and Entrepreneurs
5.1 Accessibility is a Legal Mandate
Startups must ensure their platforms comply with accessibility laws before launch to avoid legal action and penalties.
5.2 Inclusion Expands Market Reach
Building accessible platforms allows companies to reach a larger audience, including millions of specially-abled users.
5.3 Early Compliance Prevents Legal Hurdles
Legal battles are costly and time-consuming. Ensuring accessibility from the outset can help startups avoid such issues.
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