Ola, Uber, Rapido autos declared ‘illegal’ in Bengaluru; companies asked to stop in 3 days

App-based cab and bike aggregators including Ola, Uber, and Rapido have been declared “illegal” by the Karnataka state government. The Karnataka transport department has passed an order calling autos services provided by these ride-hailing platform companies “illegal”.
Why the ban on Ola, Uber autos
The department has called the auto services run by the cab aggregators ‘illegal’ under On-Demand Transportation Technology Act 2016. According to the transport department, several commuters registered complaints with the transport department over Ola and Uber charging a minimum of Rs 100 even if the distance is below two kilometres. The minimum auto fare in Bengaluru is fixed at Rs 30 for the first 2 km and Rs 15 for every kilometre thereafter. The vehicle aggregators have been directed to submit a report.
“The aggregators are providing autorickshaw services in violation of the above regulations. Also, it has come to the notice of the department that customers are being charged higher rates than the rates fixed by the government,” the letter added.

Transport commissioner THM Kumar has said they have granted licences to these firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The rules do not apply to autos.
The Competition Commission of India (CCI) had also issued a warning on September 9 and asked the Indian cab aggregators (CAs) like Ola, Uber, and Meru to formulate clear and transparent policies with respect to the sharing of revenue on account of surge pricing between the drivers and the CAs.
The department’s notice, ride-hailing companies have to stop their auto services at the earliest and also not to charge passengers in taxis more than the fare prescribed by the government. The department also warned of legal action if they fail to comply with the order.