Karnataka CM orders tough action against ride-hailing cos offering auto rides

“No one can operate a service without a licence,” Bommai told media persons on Tuesday, commenting on the subject after reports surfaced that Uber, Ola and Rapido were collecting inflated fares from customers on auto-rickshaw rides booked on their apps.

The CM said he discussed the subject with transport minister B Sriramulu on Monday and instructed him to take tough action if any operator was found violating the law.

On Tuesday, transport commissioner THM Kumar conducted an in-person hearing with Uber and Ola executives in Bengaluru and directed them to stop forthwith offering auto-rickshaw rides on their apps. Kumar told the two companies that the licence issued to them under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, covered only rides on motor cabs and not auto rickshaws.

The transport department, officials told ET, would follow up its verbal directions to the companies with a formal notification of the proceedings of Tuesday’s meeting.

The Uber and Ola executives maintained that their own reading and understanding of the regulations suggested that their licences covered auto rickshaws too. The transport commissioner, however, rejected their claim, saying autos were distinct from motor cabs.

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The executives, officials said, agreed to stop the facility to book auto-rickshaw rides on their apps.

The authorities suggested to the ride-hailing firms that they were free to make an application to the department requesting a licence to offer auto-rickshaw rides as well on their apps. Since it requires amendments to the existing policy, the department would forward such a request to the government.

The hearing on Tuesday was part of proceedings that the transport department initiated last week, when it issued notices to Ola, Uber and Rapido, asking them to stop their auto-rickshaw ride-hailing services.

Sections of auto drivers staged a demonstration in front of transport department offices on Monday, after authorities started levying a fine for offering rides booked on apps against the government direction and for not operating the fare meters.

Sources told ET that all three companies submitted their written response to the government on Sunday, following which the companies were asked to attend a meeting with the government.

ET reported on October 10 that Ola and Uber would have a joint meeting with the authorities. Rapido has been called separately, since it did not have an aggregator’s licence to operate in the city. It was not clear if the meeting with Rapido had happened at the time of writing this article.

In the meeting, both Uber and Ola also discussed the possibility of making changes to the convenience fee which can go as high as Rs 47 after tax for the consumer in addition to the base fare of Rs 30, a source said.