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State’s online cab aggregator rules stay: Karnataka High Court

The Karnataka High Court has upheld the state government’s rights to frame the Karnataka On-demand Transportation Technology Aggregators Rule, 2016 under the Union government’s Motor Vehicle Act, 1988, reports Mint. Online cab aggregator Uber had contested the state’s authority to frame the rules and the legality of the rules. According to the report, Uber has a month to get a license and follow the guidelines in order to operate in the state. The court said that a criminal complaint filed against a driver or an employee would not be grounds to cancel the aggregator’s license. According to an Economic Times report, the court has also upheld the aggregator rules which demand a panic button, 8 hour work days for drivers, permits other than All India Tourist vehicles and displaying taxi boards atop the vehicle. However, the court said that there should be no minimum limit on the aggregator fleet size, struck down a rule which asks for passenger personal information citing abuse of power and violation of a person’s right to privacy and rejected the security deposit of Rs 100,000 for 1,000 taxis. Note that Uber is facing the "drivers are employees" problem across the globe. Recently, a UK court ruled that Uber's drivers were in fact employed by the company and were entitled to employee benefits. For the Karnataka HC's ruling, Uber told MediaNama that is it yet to receive a copy of the order and will decide on its next steps after it gets one, while Ola is yet to…

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I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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