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Karnataka Transport Department Asks Ola, Uber, Rapido to Stop Autorickshaw Services

Aggregators face flak over surge pricing and lack of transparency in fixing costs, but so do auto drivers for flouting the meter system

With inputs from Vallari Sanzgiri  After noting the high fares charged by Ola, Uber and Rapido for hailing autorickshaws (autos), the transport department has asked these cab aggregators to stop auto rides with "immediate effect", Transport Commissioner T.H.M Kumar told The Hindu on October 6th. Interestingly, ground reports on October 10 revealed that the company workers continue to provide their services on Monday morning. In 2021, the basic auto fares in Bengaluru were fixed at Rs 30 for 2 km (which was also the minimum fare) and Rs 15 for subsequent kilometres. However, the cab aggregators were charging a premium on the fixed prices, the Hindu said. "The aggregators have violated rules by charging exorbitant fares. Following complaints, notices have been issued and further action will be initiated. At present, the issue of the aggregators’ rules is pending before the High Court. These aggregators are taking advantage of the situation and fleecing passengers. Here the drivers are not at fault. Notices have been issued against aggregators as they are charging fare in violation of rules,” said T.H.M Kumar, Commissioner for Transport and Road Safety, Karnataka. Company representatives on October 8 told Inc42 that they plan to respond to the government notices. Why it matters: The fares of services such as Ola and Uber largely remain unregulated and rely on demand and supply to reach a ride's fare – peak hours lead to a fare higher (or much higher) than non-peak hours. See the tweet below: https://twitter.com/John_frank_2/status/1570774000288301057?s=20&t=bv7gsPrbNHkOm0TQFcaXXQ Last month, the Karnataka Transport…

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