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Karnataka Govt To Finalise App-based Auto Rides’ Convenience Fee Soon: Report

The convenience fare charged by ride hailings apps for autorickshaw rides in Karnataka has been capped at 10% by the High Court as of now

What's the news? The Karnataka government will finalise the convenience they want cab aggregators to charge users for autorickshaw rides "in a day or two", senior government officials told Economic Times. The state's transport department must file an affidavit about this in the high court on Friday, ET said. Background: The Karnataka government had disallowed cab aggregators from operating in the state citing the 'exorbitant' autorickshaw fares online. The state had even warned cab aggregators of a monetary penalty if they continued to offer auto services. However, this ban was short-lived. In response to the government's actions, the cab aggregators moved the Karnataka High Court, which passed an interim order allowing cab aggregators to offer auto services and said that cab aggregators can only charge 10% over the fixed rates set by the government (plus taxes). The court order also said the state government can come up with its "fare fixation" for cab aggregators offering autorickshaw services. "..the State is open to come out with fare fixation pursuant to Section 67 of the M.V.Act particularly with regard to Auto-rickshaws plying on the platform provided by the aggregators within a period of ten to twelve days." – Karnataka High Court order What next? Next, the parties will reconvene in the High Court on 28th November 2022 to take this matter forward. Last month, at a meeting with senior transport authorities, the cab aggregators sought a convenience fee of 20%, according to ET. However, the government is more inclined towards a convenience fee…

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I cover privacy, surveillance and tech policy. In my reporting, I try my best to present the most relevant facts, and sometimes add in a pinch of my thoughts.

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