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Ola, Uber Allowed to Run Auto Service in Karnataka Till Government Fixes Fare

Ola, Uber and Rapido were directed by the Karnataka government last week to stop their ‘illegal' auto-rickshaw hailing services in the state.

Ola, Uber Allowed to Run Auto Service in Karnataka Till Government Fixes Fare

Ola, Uber were warned by the government that action would be initiated on violating the order

  • Auto-rickshaws were not covered under the license, said state government
  • Ola, Uber challenged the government's order before High Court
  • Passengers complained about being overcharged by Ola and Uber

The Karnataka High Court on Friday directed the state government to fix the fare for app-based auto-rickshaw hailing services within 15 days.

The authorities last week ordered online aggregators like Uber, Rapido, and Ola to immediately stop their services for auto-rickshaws.

The aggregators were also warned that action would be initiated if autos were found violating the order.

The government had contended that auto-rickshaws were not covered under the license issued under the Karnataka On-Demand Transportation Technology Aggregator Rules in 2016.

ANI Technologies Private Limited, which is offering service through Ola app, and Uber India Systems had challenged this before the High Court in two separate petitions.

Justice M G S Kamal, who heard the petitions on Thursday, suggested that the authorities and the companies arrive at a compromise and make a common submission.

The government had agreed to talk to the aggregators.

On Friday, the Karnataka High Court directed that the government take into account the suggestions of all stakeholders while deciding the fare within 15 days.

The High Court also directed that no coercive steps would be initiated against the aggregators till the fare is fixed. The hearing of the case was adjourned.

Last week, the Karnataka government directed the app-based cab aggregators like Ola, Uber and Rapido to stop their ‘illegal' auto-rickshaw hailing services in the city with immediate effect, citing violation of norms.

The action came after many passengers complained of being overcharged by the auto-rickshaws operating under apps like Ola and Uber.

The Karnataka State Road Transport Authority issued a notice to the companies last Wednesday, in which it stated that the cab aggregators have been allowed to run the internet-based application taxi aggregator services under the Karnataka On-Demand Transportation Technology Aggregators Rule-2016.

As per the rules, only taxi services can be provided and taxi means a motor-cab having a seating capacity not exceeding six passengers excluding the driver with public service permit on contract, the order said.


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