{"id":1282108,"date":"2024-05-31T07:37:11","date_gmt":"2024-05-31T02:07:11","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1282108"},"modified":"2024-05-31T07:37:32","modified_gmt":"2024-05-31T02:07:32","slug":"ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka\/","title":{"rendered":"Ola, Uber, Rapido Can&#8217;t Charge More Than 5% Service Charge For Auto Rides In Karnataka"},"content":{"rendered":"\n<p>The Karnataka High Court dismissed the writ petitions brought by ride-hailing businesses on Monday, which <a href=\"https:\/\/entrackr.com\/2024\/05\/karnataka-hc-maintains-5-service-charge-cap-on-app-based-autos\/\">challenged<\/a> the state&#8217;s 5% service charge cap.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Untitled-design-7-3-1280x720-1-1024x576-1.jpeg\" alt=\"Ola, Uber, Rapido Can't Charge More Than 5% Service Charge For Auto Rides In Karnataka\" class=\"wp-image-1282113\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Untitled-design-7-3-1280x720-1-1024x576-1.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Untitled-design-7-3-1280x720-1-1024x576-1-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Untitled-design-7-3-1280x720-1-1024x576-1-768x432.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Karnataka High Court Dismisses Petitions By Ride Hailing Businesses<\/strong><\/p>\n\n\n\n<p>These petitions contested the state government&#8217;s announcement that it would be raising the service charge for auto rickshaw trips for firms such as Uber, Ola, and Rapido.<\/p>\n\n\n\n<p>The court made it clear that aggregators would have the right to receive a 5% service charge in accordance with the notification, according to a Bar and Bench report.<\/p>\n\n\n\n<p>The court judgment declared that although the writ petitions are rejected, aggregators are still allowed to keep the 5% service charge that is added to the fixed rate.<\/p>\n\n\n\n<p>The ruling, according to Karnataka&#8217;s transport minister R Ramalinga Reddy, will help thousands of Bengaluru residents who depend on cars for their daily transportation.<\/p>\n\n\n\n<p>In November 2022, the Karnataka Transport Department set a 5% service charge cap with applicable GST on the basic fare for app-based auto rickshaw bookings.<\/p>\n\n\n\n<p><strong>Uber, Ola, Rapido Object To New Rule<\/strong><\/p>\n\n\n\n<p>Uber, Ola, and Rapido are among the ride-hailing companies that had objected to the change.<\/p>\n\n\n\n<p>These companies said that motor vehicle aggregator standards allow them to impose a surge price of up to double the base ticket in addition to a 20% commission.<\/p>\n\n\n\n<p>The notice was stayed by the Karnataka High Court in January 2023.<\/p>\n\n\n\n<p>The ride-hailing companies were allowed to operate for a limited time, with a 10% convenience fee.<\/p>\n\n\n\n<p>The transport department of Karnataka set a 5% cap on the service charge for journeys in auto rickshaws.<\/p>\n\n\n\n<p>The state government&#8217;s announcement of service costs was upheld by the court order.<\/p>\n\n\n\n<p>The aggregators can collect the 5% service charge in accordance with the upheld notification, the court clarified.<\/p>\n\n\n\n<p>The transport minister for Karnataka hailed the ruling as good news for Bengaluru residents.<\/p>\n\n\n\n<p>The goal of the service charge cap was to control costs associated with booking auto rickshaws using apps. In their argument, the ride-hailing companies highlighted regulations permitting a larger commission and spike pricing.<\/p>\n\n\n\n<p>In January 2023, the Karnataka High Court first gave these businesses permission to charge a temporary 10% convenience fee. The ruling upholding the service charge cap clarified the maximum amount that ride-hailing companies might charge.<\/p>\n\n\n\n<p>The verdict was perceived as a step in the right direction for Bengaluru commuters who depend on auto rickshaws on a daily basis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Karnataka High Court dismissed the writ petitions brought by ride-hailing businesses on Monday, which challenged the state&#8217;s 5% service charge cap. Karnataka High Court Dismisses Petitions By Ride Hailing Businesses These petitions contested the state government&#8217;s announcement that it would be raising the service charge for auto rickshaw trips for firms such as Uber, [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":1282113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[5130,196,111],"class_list":["post-1282108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-auto","tag-rapido","tag-uber"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ola, Uber, Rapido Can&#039;t Charge More Than 5% Service Charge For Auto Rides In Karnataka - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ola, Uber, Rapido Can&#039;t Charge More Than 5% Service Charge For Auto Rides In Karnataka - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"The Karnataka High Court dismissed the writ petitions brought by ride-hailing businesses on Monday, which challenged the state&#8217;s 5% service charge cap. Karnataka High Court Dismisses Petitions By Ride Hailing Businesses These petitions contested the state government&#8217;s announcement that it would be raising the service charge for auto rickshaw trips for firms such as Uber, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-31T02:07:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-31T02:07:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Untitled-design-7-3-1280x720-1-1024x576-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Radhika Kajarekar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Radhika Kajarekar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka\/\",\"url\":\"https:\/\/trak.in\/stories\/ola-uber-rapido-cant-charge-more-than-5-service-charge-for-auto-rides-in-karnataka\/\",\"name\":\"Ola, Uber, Rapido Can't Charge More Than 5% Service Charge For Auto Rides In Karnataka - Trak.in - Indian Business of Tech, Mobile &amp; 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