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Karnataka Government Meets Aggregators To Resolve Issues Over Auto-Rickshaw Fares

However, local auto unions dubbed this meeting as an eyewash

Karnataka Government Meets Aggregators To Resolve Issues Over Auto-Rickshaw Fares
POSTED ON October 31, 2022 7:57 PM

The Karnataka government, under the chairmanship of the Principal Secretary N.V Prasad and Transport Department Commissioner THM Kumar, held a meeting with representatives of aggregators Ola, Uber and Rapido over the high fares of auto-rickshaws. While details of the meeting were undisclosed, it is presumed that the cab aggregators requested the Basavraj Bommai government to fix a fare of Rs 100 per kilometer. 

However, auto unions were unimpressed by this move and dubbed the meeting as an eyewash. 

Ride hailing aggregators ran afoul with the Karnataka state government since as the latter claimed it had received numerous complaints about overcharging, surge pricing and unavailability of vehicles during peak hour. On October 6, the state government issued a notice to Ola, Uber and Rapido, asking them to stop auto rickshaw services within three days in the state. The organisations challenged the order and escalated the matter to the Karnataka High Court. 

After hearing representations from both sides, the Karnataka High Court directed the state’s Transport Department to hold another fresh round of talks to resolve the tussle regarding fares. 

Earlier, the government had fixed a base fare of Rs 15 from Rs 13 for every subsequent kilometer for the app-based auto rickshaws. It also prescribed a fixed fare of Rs 30 for up to two kilometers, which is a basic fare of Rs 30 for auto users. 

As per sources, the ride hailing companies are now seeking a 30 per cent hike in price. It is now to be seen whether both parties can reach a middle point to resolve the fare issues.

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