Popular ride-hailing app Uber on Tuesday, November 1, said that it is considering restricting auto services to select parts of Bengaluru in a statement published on its website. Nitish Bhushan, Head of Central Operations, Uber India and South Asia stated that the mobility platform will not be able to operate within the current 10% commission cap rules in Bengaluru.
“Currently, our commission in Bengaluru is capped at 10% of the fare collected. This is not financially sustainable. If our costs can not be covered through commissions, we will have to find ways to offload costs that could impact the experience of drivers and riders. In the face of these commission caps, we may have to make the difficult decision to limit Uber Auto to select parts of Bengaluru where the service is viable,” Nitish Bhushan said. “This will hurt drivers and inconvenience riders who depend on aggregators for their commuting needs,” the statement added.
The company has been at odds with the Karnataka Transport Department over its fare structures, particularly in hailing autos in Bengaluru. Citing the recent ban order by the Karnataka government, Uber said in its statement that e-hailing services are operating “under a cloud” in Bengaluru. “Currently, Uber and other players in the city are operating under a stay order granted by the Hon’ble Karnataka High Court after the Karnataka state government announced a ban on aggregators for running autos,” Uber said in its statement. It added, “We want to work with the government on appropriate fare regulations that build on the benefits that e-hailing has brought to the auto sector.”
Earlier in October, the Karnataka government ordered cab aggregator apps including Uber, Ola and Rapido to suspend auto services in the city, citing complaints of high fares. The Karnataka Transport Department, in its order, referred to complaints of commuters being charged a minimum of Rs 100 even for short distances. The cab aggregator apps had approached the Karnataka High Court, which stayed the ban. The court reportedly directed that the aggregators can only charge upto 10% booking or convenience fees. The Transport Department was directed to come up with new fares following revisions, Hindustan Times reported.
