App-based ride aggregators such as Ola and Uber have been asked to shut their auto-rickshaw hailing services in Bengaluru with immediate effect.
The Karnataka Transport Department, in a notice dated Oct. 6, said app-based aggregators have been operating illegally on two grounds:
As per the provisions of the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, app-based aggregators are only allowed to provide taxi services, which include only motor-based cabs having seating capacity of up to six people. Auto-rickshaw services are not included in the rules.
Customers are being charged higher rates than that fixed by the government.
A copy of the notice—originally issued in Kannada—was reviewed by BQ Prime.
"Therefore, the provision of auto-rickshaw service under the game service has been directed to be discontinued... and not to charge passengers more than the rate prescribed by the government. If you have any explanation about illegal auto-rickshaw operation, you are advised to submit it within three days. If not, legal action will be taken," the notice issued to ANI Technologies, Ola's parent, and Uber read.
An Ola spokesperson declined to comment on the matter. Uber, too, didn't respond.
A Rapido spokesperson told BQ Prime that the company has "received a notice from the Road Transport Authority, and we will be responding to it within the stipulated time", asserting that all its operations in Bengaluru are legal.
"The allegations being made regarding extra money charged by Rapido on auto taxi fares are completely false. All our fares are determined in accordance with the fares decided upon by the state government, and Rapido is not charging any extra money over those fares," the company spokesperson said.
The issue of overcharging was first reported by The Times of India on Oct. 6. That was followed by a letter from Tejasvi Surya, a Lok Sabha member of Parliament from Bangalore South constituency, to Chief Minister Basavaraj Bommai urging him to take necessary action.
Auto rickshaw are backbone of first & last-mile connectivity in Bengaluru.
We received many complaints recently regarding tech aggregators charging ₹100 as minimum charge against the fixed limit of ₹30.
Requested CM Sri @BSBommai & Sri @sriramulubjp to take necessary action. pic.twitter.com/37h2elgWNjEssential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
