New Delhi: The Karnataka government has declared app-based cab and bike aggregators including Ola, Uber and Rapido illegal and asked them to stop their services within the next three days. According to media reports, State Transport has issued notices to the companies.
The notice issued by the department said, ‘Auto services should be stopped and passengers should not be charged more than the fare fixed by the government.
The state transport authority received several complaints from passengers of Ola and Uber charging around Rs 100 for a ride of less than two kilometres. It is to be noted that the minimum auto fare in Bengaluru has been fixed at Rs 30 for the first 2 km and Rs 15 for each kilometer thereafter.
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Cab aggregators have been given three days to close their business and completely shut down their services across the state. State police officials also said that these companies are not eligible to operate auto-rickshaws as the rules are available only for taxis.
A month ago, the Competition Commission of India (CCI) has warned Indian cab aggregators (CAs) like Ola, Uber, etc. to formulate clear and transparent policies regarding revenue sharing due to surge pricing.
According to the department’s warning, ride-hailing businesses should stop offering auto services at the earliest and should also avoid charging taxi customers more than the prescribed fares. Along with this, the department also threatened legal action for disobeying the instructions.