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The department has called the auto services run by the cab aggregators "illegal" under the...
Digital Desk: Ola, Uber, and Rapido auto-rickshaw services in Karnataka will be discontinued within three days. This comes after the Karnataka transport department issued an order on Thursday declaring the autos services provided by these ride-hailing platform companies "illegal."
The department has called the auto services run by the cab aggregators "illegal" under the On-Demand Transportation Technology Act of 2016. The vehicle aggregators have been directed to submit a report.
According to the transport department, a number of commuters have complained about how Ola and Uber charge a minimum of Rs 100 even for trips under 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.
Meanwhile, Transport Commissioner THM Kumar has stated that these firms have been issued licences to operate only taxis under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. The rules do not apply to autos.
"Taxis means a motor cab having a seating capacity not exceeding six passengers, excluding the driver," he said.
On September 9, the Competition Commission of India (CCI) also issued a warning and asked that Indian cab aggregators (CAs) like Ola, Uber, and Meru create explicit and open procedures regarding the division of money resulting from surge pricing between the CAs and the drivers.
The department's notice stated that the ride-hailing companies must cease their auto services as soon as possible and refrain from charging taxi customers more than the government-specified fare. In addition, the agency threatened legal punishment if they ignored the order.
"The aggregators are providing autorickshaw services in violation of the above regulations. Also, it has come to the notice of the department that customers are being charged higher rates than the rates fixed by the government," the letter added.
L Hemanth Kumar, additional commissioner for transport and secretary, State Transport Authority, echoed the same saying, "They are not supposed to run auto rickshaws with a cab-aggregator licence."
Aggregator rules are only for cabs. We’ve asked them to stop auto rickshaws services through the app and submit a report," he added.
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