THIS state govt BANS ride-hailing service Ola, Uber, & Rapido; calls them 'illegal'

Karnataka State transport authority has received several complaints from commuters regarding app-based cab aggregators charging high fares for small distance rides in the state.

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New Delhi: Karnataka government has declared app-based cab and bike aggregators including Ola, Uber, and Rapido illegal and called them to halt their services within the next three days. The State transport has issued notices to the companies, according to the media reports.

"Auto services should be discontinued and also not to charge passengers more than the fare prescribed by the government," the notice by the department read.

State Transport authority got several complaints from commuters over Ola and Uber charging around Rs 100 for a ride less than 2 kilometres. It is to be noted that the minimum auto fare is fixed at Rs 30 for the first 2 km and Rs 15 for every kilometre thereafter in Bengaluru.

The cab aggregators are given three days to wind up their business and stop their services fully in the entire state. The state police authorities also said that these companies are not eligible to run auto-rickshaws as the rules are available for taxis only.

One month ago, The Compeition Commission of India (CCI) has warned Indian cab aggregators (CAs) such as Ola, Uber, etc. and asked to formulate clear and transparent policies in relation to the sharing of revenue on account of surge pricing.

According to the department's warning, ride-hailing businesses must cease offering auto services as soon as possible and must also refrain from charging taxi customers more than the set fares. In addition, the department threatened legal action if they disregarded the directive.