Uber, Ola, Rapido continue auto services despite Karnataka government’s ban

Online booking of auto-rickshaw services on ride-hailing platforms such as Uber, Ola and Rapido continues, despite the Karnataka government making such services illegal from Wednesday following several complaints of overcharging.

However, the number of auto-rickshaws using these platforms has come down as the waiting time has increased from an average of seven minutes to 15 minutes at some places in Bengaluru. According to sources, some auto drivers use the app cautiously, while others have welcomed the government’s move.

Bengaluru is estimated to have around 200,000 autorickshaws, of which around 100,000 provide services through ride-hailing platforms. There are over 25 lakh riders who use the auto-rickshaw services provided by the aggregators.

“With or without Ola/Uber Auto, #autorickshaws in #Bengaluru don’t ply without asking for more than the actual rates. Been looking for auto since half an hour, not a single auto wants to go from Arkere to Koramangala,” Sanket Hiremath said on Twitter on Wednesday.

Uber and Ola had told the government that they have complied with the rules and reduced their minimum auto fare to Rs 30 for the first two km. Interestingly, Uber, Ola and Rapido are now telling customers about the base fare and convenience fee. They are charging. According to sources, these players have reduced the convenience fee from Rs 40 to Rs 20 to Rs 30.

“Rain or shine, our autos will make sure you stay well. With pickup and drop from home at your location,” Rapido informed its customers through the app on Wednesday.

See also  3 electric vehicle stocks to buy during market sell-offs

Transport Commissioner THM Kumar had announced that three firms- Uber, Ola and Rapido- have agreed to stop providing auto-rickshaw facility to ply auto-rickshaws on their platforms from Wednesday.

“A letter was issued by the transport department to Uber, Ola and Rapido clearly stating that they need to stop operations immediately till the auto license is issued,” an industry source said. “He was asked to file an application to obtain an auto-licence.”

The Transport Commissioner pointed out that under the Karnataka On-Demand Transportation Technology Aggregators Rule (KOTTAR), 2016 there is no scope for mobility players to offer autorickshaw services on its platform. They will have to submit a fresh application for the resumption of autorickshaw services.

The Karnataka government warned app cab aggregators that it would impose a fine of Rs 5,000 on vehicles operating illegally. No action will be taken against autorickshaws and only the firms collecting them will have to pay the fine. The transport department had even said that it would write to the cyber division to stop the auto rickshaw services as it cannot do so directly.

Uber on Wednesday evening said that autos play an important role in India’s transportation needs. An Uber spokesperson said, “We look forward to working with the government to ensure that the benefits of e-hailing reach the auto industry, and in particular the thousands of drivers and millions of riders who use aggregator apps like ours.” are dependent.” , An Uber spokesperson said, “The people of Bangalore have made it clear that they value door-step pick-up, no bargaining and round the clock support, which platforms like Uber have to offer to meet the mobility needs of the city. bring it.”

See also  Carvana: The Value Trap -- Still Don't Buy During This Auto Bubble (NYSE:CVNA)