Uber, Ola Allowed To Charge 5% Extra Over Govt-Approved Fares For Auto In Bengaluru & Entire Karnataka

New fares for the autorickshaw aggregators across the state has been fixed by the Karnataka transport department on Friday.

The online app-based aggregators have been directed by the transport department to operate autos at 5 per cent above the base fare fixed by the government (Rs 30 for the first 2 km) along with the applicable tax (5 per cent GST).

In an interim order, the Karnataka High Court had allowed aggregators to operate at 10 per cent above the base fare plus applicable taxes.

For the first two kilometres, a rate of Rs 30 as the minimum fare was fixed by the Karnataka government in 2021. However, the ground reality is that the aggregators have been charging commuters way more.

Notices Issues to Aggregators by Transport Department

Notices by the transport department have been issued to the aggregators concerned with the matter stating that autorickshaws and cab services available under the online apps violated rules and guidelines. The transport department also asked them to stop operating autos and apply for a separate three-wheeler licence.

It was held that only cars and not autorickshaws fall under “Taxi” services. The government had claimed before the court that app-based aggregators were charging more than the rates fixed by the authorities and that they had not obtained the licence for aggregating autorickshaws and therefore their services have been stopped.

Post this announcement, the aggregators ANI Technologies Private Limited and Uber India Systems Private Limited challenged the transport department’s decision to stop auto-hailing services before the court.

A New Tariff Structure Directed by High Court

After this, the high court gave orders to the state government to come up with a new tariff structure after framing guidelines for autorickshaw services run by app-based aggregators within 15 days.

It also directed the government not to take any coercive action and permitted aggregators to run autorickshaws in the city by collecting 10 per cent and GST (5 per cent) on the existing base fare.