Karnataka orders ride-hailing firms including Ola, Uber to stop auto-rickshaw services in 3 days | The Financial Express

Karnataka orders ride-hailing firms including Ola, Uber to stop auto-rickshaw services in 3 days

The Karnataka government passed an order to call off the auto-rickshaw services by the ride-hailing companies – Ola, Uber and Rapido on September 6.

Karnataka orders ride-hailing firms including Ola, Uber to stop auto-rickshaw services in 3 days
The noticed has asked the ride-hailing companies to stop the auto services at the earliest.

The Karnataka government passed an order to call off the auto-rickshaw services by the ride-hailing companies – Ola, Uber and Rapido on September 6. 

As per the order, the auto-rickshaws from the following companies will be discontinued in three days. 

Calling the services ‘illegal’ in lieu of the On-Demand Transportation Technology Act 2016, the State Governement has asked the vehicles aggregators to submit a detailed report for the same. 

This comes after continuous complaints about Ola and Uber from several commuters, who were being charged a minimum of Rs 100 for a distance that is less than 2 kilometers. On the contrary, the minimum fixed fare in Bengaluru is Rs 30 for the first 2 km and Rs 15 per km thereafter. 

Speaking about the same, the additional commissioner for transport and secretary, State Transport Authority, HM Kumar clarified that the grant of licences to the firms was meant only to run taxis, and hence it is not applicable to auto-rickshaws. 

In addition to strictly asking the ride-hailing companies to stop the auto services at the earliest, the notice also directed them not to over-charge the passengers beyond the prescribed fare. This is followed by a warning of legal action, which can be taken in case of non-compliance of the passed order. 

Also read: Top 10 reasons behind ride cancellation by Ola and Uber drivers

Earlier on September 9, the Competition Commission of India (CCI) had already raised a warning for the cab aggregators, asking for the formulation of clear and transparent policies in regard to the revenue share. This came after the introduction of surge pricing by cab aggregators and cab drivers. 

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