Ola, Uber, Rapido Autos Banned in Karnataka After Overcharging Complaints; Services, Declared As 'Illegal', To Discontinue in 3 Days
The move comes after several commuters complained that Ola and Uber were charging a minimum of Rs 100 even if the distance is below two kilometres.
Bengaluru, October 7: Karnataka government on Thursday declared the auto services by ride-hailing platforms - Ola, Uber, and Rapido as "illegal" and Ola’s parent company, Uber and Rapido, calling their autos “illegal” and asked them to stop the services in three days. Karnataka transport department issued notices to the vehicle aggregators and directed them to submit a report, Economic Times reported.
The move comes after several commuters complained that Ola and Uber were charging a minimum of Rs 100 even if the distance is below two kilometres. Taking cognizance of these complaints, the transport department issued a notice. "Auto services should be discontinued and also not to charge passengers more than the fare prescribed by the government," the notice read. Lumpy Virus: Karnataka Govt Releases Rs 2 Crore Compensation to Cattle Owners in State for Livestock Deaths.
The minimum auto fare is fixed at Rs 30 for the first 2 km and Rs 15 for every kilometre thereafter in the state. Meanwhile, the vehicle aggregators have been told to stop their auto services at the earliest. The notice also directed them not to charge passengers in cabs more than the fare prescribed by the government. On failing to comply with the order, legal action will take place, the department warned. Ola CEO Bhavish Aggarwal Denies Reports of Merger With Uber, Says ‘We’re Very Profitable and Growing Well’.
As per the report, firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The aggregators were carrying out autorickshaw services in violation of the regulations.
(The above story first appeared on LatestLY on Oct 07, 2022 04:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).