In an unexpected move, the Karnataka Transport Department has done something that the country’s largest cab aggregators did not expect. The Department of Transportation recently issued a notice to major ride-hailing companies Ola, Uber, and Rapido to halt operations of their vehicles in the state. In addition, the department has requested that the companies provide a report on the rising cost of rides. The notice was issued on October 6th, and the Transport Department gave the aggregates a total of three days to shut down auto operations.
In a notice announcing the issuance of this order, THM Kumar, the transport commissioner, stated, “As per the provisions under On-Demand Transportation Technology Act 2016, aggregators are given licence to provide taxi services only, taxi means a motor cab with a seating capacity not exceeding 6 passengers excluding the driver with public service permit on contract.” “The companies should submit an explanation about illegal autorickshaw operation, you are advised to submit it within 3 days,” the notice continued. Otherwise, legal action will be taken.”
According to officials, the agency was informed that customers are being charged rates that are higher than those set by the government. Meanwhile, the Competition Commission of India (CCI) stated in September that Indian cab aggregators such as Ola, Uber, and Meru must develop explicit and open regulations governing how much money drivers and CAs will receive from surge pricing.
Also Read: Mercedes-Benz To Send Cyrus Mistry’s GLC Data To Germany For Further Investigation
On the same topic, Tejasvi Surya, MP from Bengaluru South, stated in a recent Tweet to Karnataka’s CM and Minister of Transport, “Auto rickshaws are the backbone of first and last-mile connectivity in Bengaluru.” We recently received numerous complaints about tech aggregators charging $100 as a minimum charge against a fixed limit of $30. Requested that CM Sri @BSBommai and Sri @sriramulubjp take action.
The government of India issued a revised set of regulations for taxi aggregators in November 2020, recommending that surge pricing during peak periods be limited to 1.5 times the standard cost. the administration The authorities set the base fee (for the first two kilometres) at Rs 30 last year, with an additional Rs 15 for each additional kilometre. However, taxi aggregators increased the basic charge from around Rs 50 to Rs 60 to Rs 100 to Rs 115 in the previous six to eight months due to increases in fuel costs as well as the general impact of inflation.
As of yet, no response from the companies has been reported, and it remains to be seen what actions the cab aggregators will take in this regard. We will have to wait for the companies to submit the requested report, after which the government will take appropriate action.
Recently, it was reported that the city’s auto unions are also developing and launching their own mobile application called Namma Yatri. The Autorickshaw Drivers Union, in collaboration with the Beckn Foundation, will launch the app on November 1. ARDU president D Rudramurthy told a media outlet, “Our union plans to launch the Namma Yatri app on November 1.” We’ll charge the government-set fare plus an additional $10 for pick-up. We also intend to introduce a flat 40 fare within a 2-kilometer radius of Metro stations and residence/office.”
Also Read: Nitin Gadkari Slams Amazon On Selling Clips That Disable Seatbelt Reminder Warning
