Karnataka govt bans ride hailing services in the state

App-based cab and bike aggregators including Ola, Uber, and Rapido have been declared ‘illegal’ by Karnataka state government and have been asked to discontinue their auto services from the state within the next three days.

Several commuters had complained to the state government that the companies charge a minimum of Rs 100 as fare even when the distance is below 2 km. According to the norms, the auto drivers are eligible to charge a fixed Rs 30 for the first 2 km and Rs 15 per km thereafter.

A notice by the Karnataka State Transport Department said, “The auto services should be discontinued and not charge passengers more than the fare prescribed by the government.” The department has given the aggregators three days to file the compliance reports. The state police authorities also said that these companies are not eligible to run auto-rickshaws as the rules are only available for taxis.

Rapido has claimed that its services and fares are in line with government rules. A Rapido spokesperson said, “Rapido would like to clarify that none of its operations in the city of Bengaluru are illegal. We have received a notice from the Road Transport Authority, and we will be responding to it within the stipulated time. 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.”

Following the action, Uber and Ola have reportedly reduced their minimum auto fare for the first 2 km back to Rs 30. Ola stated that the operations will run as per normal. However, officially, the company has refused to comment on the issue.