Uber, Ola, Rapido Autos To Discontinue In Three Days, Labelled Illegal

On Thursday, the Karnataka transport department sent letters to ANI Technologies, the parent company of the ride-hailing service Ola, Uber, and Rapido, describing their vehicles as illegal and requesting that they cease operations within three days. 

It has been requested that the car aggregators produce a report. This comes after several commuters complained to the transport department about how Ola and Uber charge at least Rs 100 even for trips under two kilometres. Bengaluru's minimum auto charge is set at Rs 30 for the first 2 km and Rs 15 for each additional kilometre.

In accordance with the department's warning, ride-hailing businesses must cease their vehicle services as soon as possible and refrain from charging taxi customers more than the set rate. In addition, the agency threatened legal punishment if they disregarded the directive. 

The Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, according to Transport Commissioner THM Kumar, have given these businesses licences to operate exclusively taxis. Automobiles are exempt from the regulations. 

 Taxis means a motor cab having a seating capacity not exceeding six passengers, excluding the driver, he added, according to a report.

To compete with ride-hailing services like Ola and Uber, the Autorickshaw Drivers Union (ARDU) and the Beckn Foundation, which is funded by Nandan Nilekani, aim to release the Namma Yatri app on November 1.

Karnataka Minister orders seizure of Ola, Uber autos violating govt notice

After the Karnataka government's notice to app-based cab aggregators to stop auto services in Bengaluru soon, Transport Minister B Sriramulu said on Saturday, October 8, that officials have been ordered to impound Ola and Uber autos that are still plying. He noted that cab aggregators like Ola, Uber and Rapido had received notices for violations of rules regarding the minimum fare, and that he would decide the next course of action in a few days. Ola and Uber are supposed to make commuting easier for people without getting in their way, but we still receive complaints every year. Additionally, there are some technical issues, thus a notice has been given to them, said Sriramulu.

Earlier on October 6, Transport Commissioner THM Kumar ordered Ola, Uber, and Rapido to stop auto services in Karnataka, after several commuters complained about their high prices.  In a notice to Uber, ANI Technologies — which runs Ola — and Rapido, the Karnataka Transport Department on Thursday, October 6, referred to complaints of the app-based cab aggregators charging a minimum of Rs 100 for auto rides and called it an illegal practice. Further, the aggregators have been ordered to submit a compliance report as well.

Additional Commissioner for Transport and Secretary, State Transport Authority L Hemanth Kumar told the Times of India that the cab aggregators have been given time till Tuesday, October 11, to stop auto services. He also said that further action will be taken after consulting with the government's legal counsel, as a case filed by the aggregators is still pending in the Karnataka High Court.

The transport department last month filed as many as 292 cases against the ride-hailing apps in response to citizen complaints of overcharging. According to The Hindu, the aggregators were targeted as a result of public outcry. In response to the warning, BJP MP Tejasvi Surya said he has asked Chief Minister Basavaraj Bommai and Transport Minister Sriramulu to take the appropriate steps.