May 23, 2024
Ola, Uber, Rapido Banned in Karnataka, Govt Calls them 'Illegal"

Ola, Uber, Rapido Banned in Karnataka, Govt Calls them ‘Illegal’

On Thursday morning, the Karnataka State Transport Department passed an order calling all the ride-hailing services in the state “Illegal” and asked them to stop their auto rickshaw services immediately.

This is because the platforms are running auto rickshaw services with a cab aggregator license, which is deemed illegal. Warning them of strict legal action for failure to comply, the order asked these platforms to submit a report within 3 days.

Ride-Hailing Services Banned in Karnataka

Leveraging a loophole in the law to pump more money, the raid-hailing services in Karnataka are slapped with a banning order now. Platforms like Ola, Uber, Meru, Rapido, etc., are asked by Karnataka’s Transport department to stop their auto-rickshaw services since they’re unauthorized.

Talking on this, Karnataka’s Transport minister THM Kumar said they had granted licenses to these services as per the On-Demand Transportation Technology Aggregators Rules 2016 – which only applies to Taxis – which the government states as a motor cab with a seating capacity of not more than six passengers, excluding the driver.

So all the auto-rickshaws run by these companies (like Ola, Uber, Meru, etc.) don’t come under the law. So asking these platforms to stop their auto rickshaw services immediately, the order also warned the platforms not to charge more prices than what’s prescribed by the government – for their cab services.

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This order was triggered after several complaints received by the citizens (also the users of these services) regarding higher charges they’re collecting that are deemed unsuitable as per laws.

They complained that these services are charging Rs.100 for even 2 kilometers – when the government-prescribed rate is Rs.30. In Bengaluru, the rate for an auto rickshaw fixed by the government is Rs.30 for the first two kilometers, and Rs.15 for every kilometer after that.

Since they’re looting, the government has intervened to stop them immediately and asked them to submit a report within 3 days. Additional Commissioner of transport and secretary said, “They’re not supposed to run auto rickshaws with a cab-aggregator license,” so asked them to stop immediately.

Earlier last month, the Competition Commission of India also issued a warning to these can aggregators – asking them to list out the policies surrounding the share of surge price revenues between the cab drivers and them (cab aggregators).

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