Blog

The Karnataka state government has declared the auto services of app-based cab and bike aggregators Ola, Uber and Rapido “illegal” again and has asked them to discontinue the services in three days.

A notice by the Karnataka State Transport Department said, “The auto services should be discontinued and not charge passengers more than the fare prescribed by the government.” The department has given the aggregators three days to file the compliance reports.

Reportedly, commuters have complained to the state government that the companies charge a minimum of Rs 100 as the base fare. According to government norms, auto drivers are eligible to charge a fixed rate of Rs 30 for the first two kilometres and Rs 15 per kilometre thereafter.

The state police authorities have said that the ride aggregators are not eligible to run auto services as rules are applicable for taxis only.

The three companies are yet to respond to calls made with regard to this development.

This is not the first time that the aggregators’ services have been called “illegal”. The aggregators have had their run-ins with the state government since 2016, the most recent one being in March 2019.

loved this story” data-new-ui=”true” data-explore-now-btn-text=”Explore Now” data-group-icon=”https://images.yourstory.com/assets/images/alsoReadGroupIcon.png” data-headline=”1338 people loved this story”>

In a letter dated March 18, 2019 the regional transport department issued a notice to ANI Technologies, Ola’s parent company, asking it to suspend its app-based cab services in the city.

The two-page letter stated that the ride-hailing app has been illegally operating bike-taxi services through alleged “fake licences”. It said that the transport department would be suspending the company’s licence for the next six months, in effect banning all its services. The department’s notice also stated that the app-based services are against the Karnataka Motor Vehicles Act.

According to news reports, local auto drivers are planning to start their own mobile app called ‘Namma Yatri’. YourStory has not independently verified these reports.