The relationship between cab aggregators and the Karnataka government has been witnessing major upheavals since early October
App-based cab service provider Uber has hinted it may restrict providing auto services in Bangalore. This indication came after the state transport authority issued notices to cab aggregators such as Uber, Ola, and Rapido stating that the law in Karnataka permits technology platforms to run only four-wheeled cars. The government also warned to impose a fine of Rs 5,000 on some vehicles if they are found to provide auto rickshaw services before the government undertakes any decision, Karnataka Transport Commissioner T.H.M Kumar said.
Under such a situation, Uber is now re-considering the future of e-hail auto service in the city. Through a blog post, the popular cab aggregator informed, “Currently, Uber and other players in the city are operating under a stay order granted by the Hon’ble Karnataka High Court after the Karnataka state government announced a ban on aggregators for running autos."
The relationship between cab aggregators and the Karnataka government has been witnessing major upheavals since the early days of October. The Karnataka government accused the aggregators of overcharging the users, almost a year after prescribing the fixed minimum fare of Rs 30. On October 6, the government issued a notice to Ola, Uber, and Rapido asking them to stop their auto rickshaw services within three days. The cab aggregators challenged the issue and took the matter to the state high court.
After hearing both sides, the court ordered the state government to hold another fresh round of talks with cab aggregators in order to resolve the entire situation. The court may take the final call in the hearing scheduled on November 7. Both parties had a meeting nearly four days ago, where the cab aggregators pushed for a 30 per cent hike in base fare, multiple sources claimed.