Why Ola, Uber, Rapido’s auto services declared illegal in Bengaluru?

The Karnataka transport department issued a notice to Ola, Uber and Rapido to discontinue their car services within three days. The department has ordered them to give an explanation about the complaint against the exorbitant charges charged to customers.

App-based taxi and bike aggregators including Ola, Uber and Rapido have been declared "illegal" by the Karnataka state government and have been asked to suspend their car services in Karnataka within the next three days.

"Car services must be suspended and must also not charge passengers more than the government-prescribed rate," the department's notice said.

The government has given companies three days to comply with the rates set by the government and submit their response and compliance report.

According to the Karnataka government, companies can only charge a flat rate of Rs 30 for the first 2 km and Rs 15 thereafter. However, these companies reportedly charged a minimum of Rs 100 even for less than 2 km.

T.H.M. Kumar, Commissioner of the State Department of Transportation, has stated that they received a large number of complaints during the last two or three days. The complaints were specifically filed against taxi aggregators for charging double for car services.

Notices have been issued to taxi aggregators and they have been given three days to explain. “A decision would be made once we receive the response,” he explained.

Additional Transport Commissioner and State Transport Authority Secretary L Hemanth Kumar has also said that they are not supposed to operate autorickshaws with a taxi aggregator license as the aggregator rules only apply to taxis. Therefore, apps have been asked to stop autorickshaw services and file a report.

T.H.M. Kumar, Commissioner of the State Department of Transportation, has stated that they received a large number of complaints during the last two or three days. The complaints were specifically filed against taxi aggregators for charging double for car services.

Notices have been issued to taxi aggregators and they have been given three days to explain. “A decision would be made once we receive the response,” he explained.

Additional Transport Commissioner and State Transport Authority Secretary L Hemanth Kumar has also said that they are not supposed to operate autorickshaws with a taxi aggregator license as the aggregator rules only apply to taxis. Therefore, apps have been asked to stop autorickshaw services and file a report.

In a statement, Rapido spokesperson said: "In light of the notice issued to auto-rickshaw service aggregators by the Commissioner, Road Transport and Safety, Karnataka Department of Transport, Rapido would like to clarify that none of its operations in Bangalore city is illegal".

The Statement further reads, "We have received a notice from the Road Transport Authority and we will respond to you within the stipulated time. The accusations being made about the extra money charged by Rapido on auto taxi fares are completely All our rates are determined according to the rates decided by the state government, and Fast is not charging any extra money on top of those rates."

The spokesperson also said, "Rapido will continue to operate in Bangalore under the purview of the law. Any false accusation imposed on our auto taxi services in Bangalore is not only irrational but also inhumane as it jeopardizes the comfortable daily commute of thousands of citizens and risks the livelihood of our captains, who depend on us for their daily income. We intend to continue to serve the people of Bangalore by providing safe, convenient and affordable travel."

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