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State govt calls Ola, Uber, Rapido auto services illegal; bans them

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The Karnataka government has declared Ola, Uber, and Rapido’s car services “illegal.”
According to reports, the state government gave the firms three days to shut down their services.

According to information received on October 7, the government of Karnataka ordered app-based taxi
and bike aggregators Ola, Uber, and Rapido to cease operations within three days. The state
government said these services were illegal.

According to a notification issued by the Karnataka State Transport Department, “auto services shall be
halted and customers should not be charged more than the fare set by the government.” The
aggregators have three days to file their compliance reports, according to the department.

According to press sources, the agency has declared the aggregators’ vehicle services “illegal” under the
On-Demand Transportation Technology Act 2016.

Commuters have reportedly complained to the state government that the businesses impose a
minimum fare of Rs 100. Auto drivers are allowed to charge a fixed cost of Rs 30 for the first two
kilometers and Rs 15 per kilometer after that, according to government regulations.

The state police have stated that ride aggregators are not permitted to provide motor services since the
regulations only apply to taxis. According to an Ola insider, activities at the ride-hailing company will
continue as usual.

Officially, though, the corporation has declined to comment on the matter at hand.

Aggregator services have been described as “illegal” earlier too by the state government, Since 2016,
these companies have have been facing trouble from the government, the latest in March 2019.

A Rapido spokeswoman stated, “In view of the warning given to auto-rickshaw service aggregators by
the Commissioner, Road Transport and Safety, Transport Department of Karnataka, Rapido would like to
clarify that none of its activities in the city of Bengaluru are unlawful. We got a warning from the Road
Transport Authority and will reply within the time frame specified. The claims that Rapido charges
additional money on auto taxi fees are absolutely incorrect. All of our rates are set in line with the fares
set by the state government, and Rapido does not charge any additional fees above those fares.”

The official added, “Rapido will continue to operate in Bengaluru within the confines of the law. False
claims leveled against our auto taxi services in Bengaluru are not only unreasonable, but also cruel, since
they jeopardize thousands of residents’ easy daily commutes and jeopardize the careers of our captains,
who rely on us for a living. We plan to continue serving the people of Bengaluru by offering a safe,
convenient, and cost-effective mode of transportation.”

Ola is barred from operating taxis, automobiles, or scooters in Bengaluru for six months. The regional
transport authority sent a warning to ANI Technologies, Ola’s parent firm, on March 18, 2019, ordering it
to cease its app-based cab services in the city. According to the two-page letter, the ride-hailing app has
been illegally conducting bike-taxi services using claimed “fake licenses.” It stated that the
transportation department will suspend the company’s license for the next six months, thereby
prohibiting all of its services.

According to the department’s warning, app-based services violate the Karnataka Motor Vehicles Act.
Local vehicle drivers, according to press sources, are going to launch their own smartphone app named
‘Namma Yatri.’

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