Karnataka orders Ola, Uber, Rapido to stop auto services after overcharging complaints

The notice was issued after several commuters complained that app-based aggregators were charging a minimum fare of Rs 100 for auto rides.
Bengaluru auto rickshaw
Bengaluru auto rickshaw
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Cab-aggregator apps like Ola, Uber and Rapido have been ordered to stop auto services in Karnataka, after several commuters complained about the high prices charged by them. In a notice to Uber, ANI Technologies — which runs Ola — and Rapido, the Karnataka Department on Thursday, October 6, referred to complaints of the app-based cab aggregators charging a minimum of Rs 100 for auto rides and called it an “illegal practice”. Further, the aggregators have been ordered to submit a compliance report as well.

In the notice, Transport Commissioner THM Kumar wrote, "The aggregators are operating their auto rickshaw services in defiance of government regulations. Additionally, the department has learned that customers are being charged rates that are higher than those set by the government."  The notice ordered them to stop offering auto services as soon as possible and to stop charging taxi customers more than the government-set rate. In addition, the department warned of legal action if they disregarded the order." Auto services should be stopped, and customers should not be charged more than the government-prescribed fare," read the notice.

When asked what the department’s plan is after the app-based aggregators stop plying autos in Bengaluru, the Transport commissioner told TNM, “Upon accessing the report submitted by ANI Technologies, we will take necessary steps.” Based on figures decided last year, the minimum government-mandated auto fare is Rs 30 for the first two kilometres, and Rs 15 for every subsequent kilometre.

Based on citizen complaints of overcharging, the transport department filed as many as 292 lawsuits against the ride-hailing applications last month. The Hindu reported that the action was taken against the aggregators as a result of public concerns. Meanwhile, BJP MP Tejasvi Surya has also responded to the notice, and said that he has requested Chief Minister Basavaraj Bommai and Transport Minister Sriramulu to take necessary action.

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