Ola, Uber, and Rapido's auto-rickshaw services in Karnataka will stop in three days. This is in response to the decision issued on Thursday by the Karnataka transport department, which referred to the auto services offered by these ride-hailing platform businesses as "illegal."
The companies have been given three days by the government to abide by the rates set by the government, respond, and submit a compliance report. The companies are only allowed to charge a fixed rate of Rs 30 for the first 2km and Rs 15 for each additional km, according to the Karnataka government. However, it was claimed that these businesses were billing a minimum of Rs 100 for much shorter distances than 2km.
Because of this, Bangalore and other areas of the state have declared app-based auto services to be "illegal." According to the state police, Ola, Uber, and Rapido are only permitted to operate taxis, not their own auto-rickshaws.
The circular also made note of the fact that cab aggregators are only permitted to offer cab services. 'Motor-cab having a seating capacity not exceeding six passengers, excluding the driver with public service permit or contract,' was the definition of cab services in this definition.
With this news, a mixed reaction may be noticed in the daily commuters in the state of Karnataka. The state police authorities have said that the ride aggregators are not eligible to run auto services as rules are applicable to taxis only.
An Ola source claims that business will continue as usual for the ride-hailing company. However, the company has formally declined to comment on the current problem.
This is not the first time that the services of aggregators have been labeled as "illegal." Since 2016, the aggregators have had disagreements with the state government, the most recent of which occurred in March 2019.