Ola, Uber Rapido Auto Banned In This City: On-Demand Autos Illegal?

In a latest development, Karnataka transport department issued notices to ANI Technologies, ride-hailing platform Ola’s parent company, Uber and Rapido on Thursday calling their autos “illegal” and asked them to stop the services in three days. 

Ola, Uber Rapido Auto Banned In This City: On-Demand Autos Illegal?

How Did This Happen?

In addition, the vehicle aggregators have been directed to submit a report.

Under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, Transport commissioner THM Kumar said that they have granted licenses to these firms to run only taxis. 

So, in reality, the rules do not apply to autos.

Further clarifying, he said,  “Taxis means a motor cab having a seating capacity not exceeding six passengers, excluding the driver,”.

Why Would This Happen?

According to the notice, “The aggregators are providing auto rickshaw services in violation of the above regulations. Also, it has come to the notice of the department that customers are being charged higher rates than the rates fixed by the government,”.

Similarly, “They are not supposed to run auto rickshaws with a cab-aggregator license,” said L Hemanth Kumar, the additional commissioner for transport and secretary, State Transport Authority.  

Basically, the aggregator rules are only for cabs. That is why they have asked cab-aggregator to stop auto rickshaw services through the app and asked us to submit a report.

The plan to stop aggregator auto services will not affect drivers, according to Adarsh Auto Drivers’ Union general secretary C Sampath. 

Further adding, “In fact, the aggregators were fleecing both passengers and cutting down our incentives. We received permits not to run for aggregators but for normal rides. As a union, we already asked our members to play according to the government-fixed fare,”.

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