No Ola, Uber and Rapido Autos in Karnataka as State Government Orders to Stop Services After Overcharging Complaints

Uber Ola

The Karnataka government has reportedly announced a ban on auto services of app-based cab and bike aggregators in the state. The Karnataka State Transport Department has reportedly issued a ban on the auto services of the above-mentioned app-based services for charging passengers above the permissible limit. The order deemed Ola, Rapido and Uber as “illegal” and asked the cab aggregators to discontinue the services in three days.

The order issued by the state transport department also stated that these cab-hailing services should not charge passengers more than the auto fare prescribed by the government. Ola, Uber and Rapido have three days to file the compliance reports.

Ola, Uber and Rapido Auto Banned in Karnataka

Ola, Rapido and Uber auto services have been banned in Karnataka. The apps have to discontinue their auto services in the next three days. The apps were found to overcharge passengers even for short-distance trips. An Economic Times report stated that the state department registered a complaint raised by several commuters over Ola and Uber charging a minimum of Rs 100 for trips that were less than two kilometres away.

The report stated that the minimum auto fare in Bengaluru is fixed at Rs 30 for the first two kilometres and Rs 15 per kilometre thereafter. 

Transport commissioner THM Kumar has said they have granted licences to these firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The rules do not apply to autos. 

In addition to this, the report also added that the Competition Commission of India (CCI) had issued a warning on September 9 and asked Ola, Uber, and Meru to formulate clear and transparent policies with respect to the sharing of revenue on account of surge pricing between the drivers and the aggregators. 

Following the latest order, cab aggregators will have to stop their auto services or face legal action. “The aggregators are providing autorickshaw services in violation of the above regulations. Also, it has come to the notice of the department that customers are being charged higher rates than the rates fixed by the government,” the letter added. Ola and Uber are yet to comment on the ban order issued by the state.

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Venkatesh is our in-house leakster. He has earned honorary mentions on some of the biggest tech publications like GSMArena PCMag, NDTV, and more. When not busy playing Football and digging substantial information on un-released devices, Venkatesh likes to take his bike for a ride and dabble into nature photography.