The department has called the auto services run by the cab aggregators ‘illegal’ under On-Demand Transportation Technology Act 2016.
The Karnataka Transport Department has 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 department has called the auto services run by the cab aggregators ‘illegal’ under On-Demand Transportation Technology Act 2016.
“As per the provisions under On-Demand Transportation Technology Act 2016 aggregators are given license to provide taxi services only, taxi means a motor cab having a seating capacity not exceeding 6 passengers excluding the driver with public service permit on contract”, said the transport commissioner THM Kumar in a notice issued on Thursday.
Therefore, the provision of autorickshaw service under the same service has been directed to be discontinued, he said.
It has come to the attention of the department that the customers are being charged higher rates than the rates fixed by the government, the notice said.
In fact, The Competition Commission of India (CCI) too on September 9 said that Indian cab aggregators (CAs) like Ola, Uber, and Meru have to formulate clear and transparent policies with respect to the sharing of revenue on account of surge pricing between the drivers and the CAs.
The government of India issued a new set of guidelines for cab aggregators in November 2020 wherein it recommended that the surge pricing at busy times can be a maximum of 1.5 times the base fare.
The authorities Last year, the authorities fixed Rs 30 as the basic fare (for the first two kilometers) and Rs 15 for subsequent kilometers.
However, post the surge in petrol and diesel prices and due to the overall inflation effect cab aggregators had moved the base fare from around Rs 50-60 to Rs 100-115 in the last 6-8 months.
“The companies should submit an explanation about illegal autorickshaw operation, you are advised to submit it within 3 days. If not, legal action will be taken,” the notice by the transport department said..
