Karnataka govt bans Ola, uber, Rapido autos...


Karnataka Transport Department has issued a notice to stop the services of all aggregator-run autos like Ola, uber and Rapido in Bengaluru for the next three days, and sought a report on the hike in ride prices.

The department has termed the auto services run by cab aggregators as 'illegal' under the On-Demand Transportation technology Act 2016.


"Taxi means a motor cab with a seating capacity not exceeding 6 passengers, excluding the driver on contract with public service permit", said Transport Commissioner THM Kumar, who issued a notice on Thursday. Therefore, it has been instructed to stop the provision of autorickshaw service under this service.

In fact, the Competition Commission of india (CCI) had also on september 9 asked indian cab aggregators (CAs) like Ola, uber and Meru to have clear and transparent policies between drivers and CAs regarding sharing of revenue on account of surge pricing. 

The government of india in november 2020 issued a new set of guidelines for cab aggregators recommending that surge pricing can be a maximum of 1.5 times the base fare during peak hours. The authorities had last year fixed Rs 30 (for the first two kilometres) as the base fare and Rs 15 for the subsequent kilometres.

However, cab aggregators increased the base fare from around Rs 50-60 to Rs 100-115 in the last 6-8 months after the spurt in petrol and diesel prices and due to the overall inflationary impact.

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