Karnataka government could ban Ola, Uber and Rapido for exorbitant fares and posting notices

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The Karnataka Department of Transport has issued notices to Ola, Uber and Rapido to immediately halt their car services following a complaint over exorbitant fees being charged to customers.

The department warned app-based taxi aggregators that if the explanation is not given and the order is not complied with, “they will face legal action.”

THM Kumar, commissioner of the state’s Department of Transportation, said he had received a large number of complaints over the past two or three days. Complaints have been raised specifically against taxi aggregators for charging double for auto services.

Also Read: Taxi ‘Kali-Peeli’, Auto Minimum Fare to Increase by Rs 3 and Rs 2 from October in Mumbai

Taxi aggregators received notices and a three-day period to explain themselves. “A decision would be made once we received the response,” he explained.

Sources explain that the minimum car fare is Rs 30 and the waiting charge of Rs 5 for 5 minutes has been set officially. But, taxi aggregators would charge Rs 100 as minimum fare and a large number of people filed complaints against it.

Meanwhile, Bengaluru Autorickshaw Drivers Union (ARDU) plans to launch a mobile app – “Namma Yatri App” – to compete with Ola, Uber, Rapido and other app-based service providers by November 1.

The app will be launched in partnership with the Beckn Foundation supported by entrepreneur Nandan Nilekani.

D. Rudraswamy, Chairman of ARDU, said that app-based service providers charge Rs 100 and only give Rs 60 to drivers, keeping the remaining amount as commission.

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