Ola, Uber, Rapido will require separate three-wheeler license to run on ride hailing platforms

The Karnataka Transport and Road Safety Department has directed the cab aggregators Ola, Uber, and Rapido to apply for a separate license to run and operate three-wheeler autos on their respective platforms.

Commissioner of Karnataka Road Transportation and Safety T.H.M. Kumar clarified that companies are asked to stop operating auto services and if the autos continue to run or be allowed to book by passengers, the company will be charged a fine of Rs 5,000 per vehicle per day as the first offense.

The commissioner said, “We discussed with the companies (Ola and Uber) with regards to pricing and license. After reviewing we have directed the companies to apply for an auto aggregator license within the next one day.” He also clarified that the passengers or the auto drivers will not be held accountable for the bookings.

The Transport Department has reiterated its stance that the aggregator-run three-wheeler autos are illegal and said that they cannot run under the cab aggregation license.

The Karnataka Transport Department had recently issued a notice to stop services of all aggregator-run autos like Ola, Uber, and Rapido in Bengaluru for the next three days and asked for a report on surging ride prices.

The aggregators submitted a response on pricing which stated that the companies will charge a base fare of Rs 30 for the first two kilometres and Rs 15 per kilometre for the ride as per the government rules. Above this a convenience fee of Rs 40 per ride and a GST of 5% is levied on each ride.