The Karnataka high court gives 4 weeks for consensus over app-based auto services

Bengaluru: The Karnataka high court on Monday gave four more weeks to the state government and the cab aggregators to reach a consensus on fixing the rate for auto-rickshaw services on the apps.

The high court had previously given 15 days to the state government to come up with the fare mechanism for auto services operated by cab aggregators, after taking into account all the stakeholders in the issue.

Cab aggregators, Ola and Uber, on Monday also filed another interim petition for charging more convenience fees based on central government rules. The high court bench headed by Justice MGS Kamal granted five days’ time to the state government to submit objections, if any.

The high court had earlier allowed the cab aggregators to operate auto services with a base fare as per government rules ( ₹30), besides permitting them to charge an extra 10 per cent plus applicable taxes (GST).

The court directive came after the Karnataka State Road Transport Authority issued a notice to cab aggregators saying regulations had been violated by aggregators offering auto-rickshaw services on their apps by charging high rates and for operating illegally. The government had said that auto-rickshaws were not covered by the licence issued under the Karnataka On-Demand



Transportation Technology Aggregator Rules, 2016.

“... We also received complaints about not following the price cap that was fixed by the government. We were informed that the higher charges are being collected from the passengers. Therefore, the auto services must be discontinued and aggregators must submit a report to the government on overprice allegations,” the order said.

After the Karnataka government made the app-based auto services illegal, ANI Technologies (owner of Ola) and Uber moved the court against the order. The high court said that the government can’t just ban the aggregators with coercive steps. It asked the state government to meet cab aggregators Ola and Uber to try and reach an understanding on the fare for auto-rickshaw services through their apps.

Uber, in a statement, had said, “We welcome today’s court order, which recognises that auto drivers have the right to operate using aggregator platforms. It also recognises that platforms like Uber can charge a booking fee, which allows them to cover their costs and continue to provide their services. E-hailing autos are thriving in Bengaluru because of the value it brings to drivers and riders, who prefer it because of the upfront pricing, the lack of haggling, and the safety features that come with the app.”