What’s the news: After much ado, the Karnataka High Court has stayed the five percent cap on auto aggregators' commission charges recommended by the transport department, reported MoneyControl. Although no official statement has come from the companies so far, Uber spokespersons maintain that the company will require higher caps for a sustainable business model. As per MoneyControl, the court’s final decision will be announced on January 12, 2023. Court says consider all stakeholders: As per the report, Justice C. M. Poonacha took note of the aggregators’ calls for a higher commission cap and advised the transport department to review the rates considering the views of all stakeholders. The cap was first proposed on November 25, 2022. Meanwhile, an Uber spokesperson told MediaNama today that a commission rate as low as five percent may even lead the company to limit its area of operation. Why this matters: The commission rate has been an issue in Karnataka since the government’s attempt to ban auto rides offered by the likes of Uber, Ola, and Rapido for their exorbitant fees. Interestingly, while the companies are alarmed by this government move, the drivers employed by these platforms welcome the 5 percent cap. It appears that this time, the government regulations are impacting the folks higher up the ladder rather than the ground-level workers. With both the government and the workforce siding with lower fees, it’ll be interesting to see how these companies figure out a middle ground. Not to mention, the decision will likely have a…
Karnataka High Court Stays 5 Percent Cap on Cab Aggregator Fees: Who Does this Impact?
The court’s final decision on the debated fees charged by aggregators will be announced on January 12, 2023
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