Ola, Uber, Rapido Autos To Be Discontinued In Karnataka Within 3 Days For Charging Extra Money From Customers

Ola, Uber, and Rapido have been the go-to option for many residing in silicon valley due to several reasons ranging from their availability in one click to the safety it offers. However, in recent times, there has been a number of customer complaints that were taken ahead with the transport authorities in regard to the prices that are being charged by the three cab aggregators.

Building on these complaints and other findings, the Karnataka transport department tagged the ride-hailing platform companies as "illegal" under the On-Demand Transportation Technology Act 2016. A span of three days has been provided to the aggregators to submit a report about the same, based upon which decision to discontinue their auto-rickshaws services will be taken.

Violation Of Cab-Aggregator Licence

The State Transport Authority's additional commissioner, THM Kumar, said that the firms were granted licenses to run taxis under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. These rules permit the license holder to run motor taxis and do not apply to other services such as autos. So many of these services were found to be in direct violation of the licenses that were granted to them.

"They are not supposed to run auto rickshaws with a cab-aggregator licence. Aggregator rules are only for cabs. We've asked them to stop auto rickshaw services through the app and submit a report," added the commissioner.

They also allegedly violated the pricing regulations set by the government, as per several complaints registered by commuters. Many among them claimed that the firms charged a minimum of ₹100 for even covering a distance below two kilometres. As per a report by the Economic times, currently, the fare structure in Bengaluru is fixed at ₹30 for the initial two kilometres and an additional ₹15 for every kilometre covered thereafter.

While Ola and Uber have not officially responded to the incident, a spokesperson from the Rapido app conveyed that they will be responding to the government within the coming three days and work in accordance with the transport authorities' decision.

Rapido also maintained that they are not charging any extra money over the set fares, and it usually includes convenience charges that could go up by ₹45 and a five per cent goods and service tax. These add-ons are what take the final costs up to ₹100, and the company claims that it is the base fare they have applied for rides up to four kilometres.

Initially, the convenience fee ranged at a minimum of ₹10-15, and it kept rising as companies' focus shifted towards improving profitability and unit economics. Simplifying the concept, the spokesperson conveyed that everything in the digital arena comes along with a convenience fee.

Every time a movie ticket or food order has been placed online, a certain amount is charged as the convenience fee as these services are brought to the customer at the convenience of their homes. Similarly, when auto and other services are hailed with one click, it is a charge paid for that convenience, reported the Times Now News.

Talking about the same to The Logical Indian, Aswathy Unnikrishnan, a frequent user of the cab services, conveyed that it is a charge that is commonly seen in e-platforms. She says that despite the added convenience fee, which could range between 20 to 40 rupees, the online cab-hailing services are still a lot cheaper than getting the running auto services. Supporting this statement, she recollects multiple instances when she has been charged over ₹250 to travel a kilometre in a local auto.

Many Bangalore auto drivers are notoriously known to not go by the meter and charge exorbitant prices, which has pushed many commuters to opt for online cab aggregators.

Government has banned #Ola #Uber #Rapido good move but the point is local auto wala also charges the same for even 1 km distance they want 100rs. No one wants to go by meter. I don't remember in recent past that any #Autowala has agreed to go by meter reading. #Bangalore pic.twitter.com/eX54hAntws

— Dreamer (@deealer) October 8, 2022

Responses And Reactions

Earlier, the Competition Commission of India (CCI) had earlier issued a warning asking several Indian cab aggregators such as Ola, Uber, and Meru to come up with clear and transparent policies in regard to sharing of revenue between the drivers and the aggregators.

On October 6, Bengaluru South Member of Parliament Tejasvi Surya tweeted about the issue and asked the ruling government and Minister for Transport to take necessary action on it. The tweet read, "Auto rickshaws are backbone of first & last-mile connectivity in Bengaluru. We received many complaints recently regarding tech aggregators charging ₹100 as minimum charge against the fixed limit of ₹30."

Many others took the cue and responded with their experiences and the actions that have been adopted against the issue so far.

The #Karnataka Govt's ban on #Ola and #Uber autos is absolutely capricious and whimsical. Agreed, their motive is to curb surge pricing but what about the bitter harassment people face when auto drivers themselves demand 2-3 times the price?

— Amit (@amit_aravind88) October 7, 2022

Government has banned #Ola #Uber #Rapido good move but the point is local auto wala also charges the same for even 1 km distance they want 100rs. No one wants to go by meter. I don't remember in recent past that any #Autowala has agreed to go by meter reading. #Bangalore pic.twitter.com/eX54hAntws

— Dreamer (@deealer) October 8, 2022

The department's notice so far has asked the ride-hailing companies to stop their auto services and not charge passengers in taxis more than the fare prescribed by the government. Violation of these would further result in legal action.

The decision left many Twitter users divided, who claimed that while the regulation is a positive move, the banning of auto services would ultimately lead to increased price demands by the local auto rickshaws.

Speaking about frequent such experiences with local auto drivers, an undergraduate student Parineeta Pandey told The Logical Indian, "If anyone has stayed in Bangalore, they know how exuberant the prices these running auto drivers ask for, and I understand this happens because of the competition they face due to the advent of these cab providing services. But I feel banning these autos doesn't make sense."

As a student who often opts to travel via these cab aggregator platforms, she conveys that these services have made it easier and more convenient as a ride is just a click away. She also reflects upon the safety mechanism that is incorporated within these platforms.

Talking about the same, Aswathy also spoke in length about features such as sharing the ride details, panic buttons, and so on within the online cab-hailing services that ensure a certain level of accountability for the commuter's safety. This form of safety is usually non-existent in the local autos. Apart from safety, the local auto drivers also tend to change the fares as per their liking, making it a lot more difficult for the passengers to opt for public transport.

They often bring up arguments about prices and rights set by the Union, and would easily scam the commuter if they are not a localite, added Aswathy.

Yet another user of these online platforms spoke to The Logical Indian, and said, "Several times Uber and Ola have charged me more than the fare shown while booking the ride, but there was a provision within the platform itself for me to take forth the grievance and get a refund." A proper platform for timely grievance redressal also adds to many users' switch from public transport to online services.

Again I had suffered with the same thing at night this guy asking for extra money and that extra money was 300 rupee which is unacceptable I want to know that when it will over for asking extra amount #Rapido #WestBengal #public pic.twitter.com/w8hs049pNs

— shoaib Ahmed (@Mrahmed3112) October 5, 2022

However, as per the latest reports, the auto unions in the city are in the process of launching their own mobile application called "Namma Yatri". The application is in talks to be launched by November 1 in partnership with Beck Foundation and would follow the government-fixed fare with an additional charge of ₹10 for pick-up.

Also Read: Journalism Student Details Assault By Uber Auto Driver On Twitter, Accused Arrested On Immediate Action