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Karnataka Stops Cab Services Like Uber, Ola Over Auto Ride Charges

Karnataka Transport Department on Friday issued notices to Ola, Uber and Rapido to immediately stop their auto services, and directed them to give an explanation on complaints against exorbitant charges levied to customers.

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The department has warned the app-based cab aggregators that if the explanation is not given and order is not complied, “they would face legal action”.

T.H.M. Kumar, State Transport Department Commissioner has stated that they received a large number of complaints during last two to three days. The complaints were raised specifically against cab aggregators for charging double for auto services. The cab aggregators have been issued notices and given three days’ time for explanation. “A decision would be taken once we receive the response,” he added.

Sources explain that the minimum auto fare is Rs 30 and the waiting charge of Rs 5 for 5 minutes has been fixed officially. But, cab aggregators are allegedly charging Rs 100 as minimum fare and a large number of people have raised complaints against it.

Meanwhile, Bengaluru Autorickshaw Drivers Union (ARDU) plans to launch a mobile app – ‘Namma Yatri App’ – to compete with Ola, Uber, Rapido and other app-based service providers by November 1. The app will be launched in partnership with entrepreneur Nandan Nilekani-backed Beckn Foundation.

D. Rudraswamy, President of ARDU had stated that app based service providers charge Rs 100 and give only Rs 60 to drivers, keeping the remaining amount as the commission.

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