Ola, Uber, Rapido autos illegal in Bengaluru; services to discontinue within 3 days
Within three days Ola, Uber, Rapido auto-rickshaws services in Karnataka will be discontinued. This is following to the order passed by the Karnataka transport department on Thursday calling autos services provided by these ride-hailing platform companies “illegal”.
Ola, Uber, and Rapido auto-rickshaw services in Karnataka would be discontinued within three days. This comes after the Karnataka transport department issued an order on Thursday declaring the motor services supplied by these ride-hailing platform businesses "illegal."
Under the On-Demand Transportation Technology Act 2016, the administration has declared that cab aggregators' vehicle services are 'illegal.' Vehicle aggregators have been asked to produce a report. This comes after several commuters registered complaints with the transport department over Ola and Uber charging a minimum of Rs 100 even if the distance is below two kilometres. The minimum auto fare in Bengaluru is fixed at Rs 30 for the first 2 km and Rs 15 for every kilometre thereafter.
According to the department's warning, ride-hailing businesses must suspend their vehicle services as soon as possible and must not charge customers in taxis more than the government-mandated fee. The agency also threatened them with legal action if they did not comply with the directive.
Meanwhile, Transport commissioner THM Kumar has said they have granted licences to these firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The rules do not apply to autos.
On September 9, the Competition Commission of India (CCI) issued a warning and requested Indian cab aggregators (CAs) such as Ola, Uber, and Meru to develop clear and open regulations regarding the sharing of money from surge pricing between drivers and CAs.
According to the department's warning, ride-hailing businesses must suspend their vehicle services as soon as possible and not charge customers in taxis more than the government-mandated fare. The agency also threatened them with legal action if they did not comply with the directive.