Uber, Ola, and Rapido Services are suspended in Karnataka due to vehicle ride charges

The Karnataka Transport Department has requested a report on the rising cost of rides and has given aggregator-run autos like Ola, Uber, and Rapido three days to cease operations in Bengaluru.

The On-Demand Transportation Technology Act of 2016 has been cited by the government as making the motor services provided by cab aggregators “illegal.”

In a notice published on Thursday, the transport commissioner THM Kumar stated: “According to the provisions under the On-Demand Transportation Technology Act 2016, aggregators are given license to provide taxi services only. Taxi means a motor cab having a seating capacity not exceeding 6 passengers, excluding the driver with a public service permit on contract.

Money Control

As a result, it has been ordered that the autorickshaw service provided as part of the same service cease.

The department has become aware that clients are being charged amounts that are higher than those set by the government, according to the notice.

In reality, on September 9, the Competition Commission of India (CCI) stated that Indian taxi aggregators (CAs) like Ola, Uber, and Meru must develop clear and open procedures regarding the division of revenue resulting from surge pricing between the CAs and the drivers.

In November 2020, the Indian government released a new set of regulations for taxi aggregators, recommending that surge pricing at busy times be limited to 1.5 times the normal rate.

the government The basic fare (for the first two kilometres) was set by the authorities at Rs 30 last year, with an additional Rs 15 for each additional kilometre.

But in the last six to eight months, cab aggregators increased the base charge from approximately Rs 50 to Rs 60 to Rs 100 to 115 due to the rise in gasoline and fuel prices as well as the general impact of inflation.

“Companies are required to provide an explanation of any illegal autorickshaw operations, and are urged to do so within three days. Legal action will be taken if necessary, “The transport department posted a notification.

In response to Moneycontrol’s inquiries, the auto and bike marketplace Rapido stated that none of its activities in the city are unlawful.

Rapido’s representative stated, “We have received a notice from the Road Transport Authority, and we will react to it within the specified period.”

The claims made regarding additional charges made by Rapido on auto cab fares are wholly untrue. The aforementioned person stated that all of our fares are established in accordance with the fares chosen by the state government and that Rapido does not charge more than these fares.

Rapido clarified that the business will continue its activities rather than suspend its services.

“Rapido will continue conducting business in Bengaluru in accordance with the law. Any unfounded claims made against our car taxi services in Bengaluru are not only unreasonable but also cruel because they risk easy daily travel.

Neither Uber nor Ola would comment.