Auto services

Uber, Ola, Rapido to resume car services, may charge 10% above flat rates: K’taka HC

The Karnataka High Court today granted relief to app-based transport technology aggregators—Whoa, Uberand Rapido Bike Taxi.

The court allowed the apps to offer auto rickshaw services in Karnataka through their platforms, however, they can only charge an additional 10% on top of the rates set by the state government, plus GST applicable, until the government fixes the tariffs as by law, according to The Hindu report.

The High Court of Karnataka also ordered the state government to set the rate for app-based auto rickshaw calling services within 15 days, according to PTI. The HC ordered the government to consider suggestions from all stakeholders when deciding the tariff within 15 days. He also ordered that no enforcement action be initiated against the aggregators until the tariff is fixed.

Representative image (Credit: Pexels)

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Last week, online aggregators like Uber, Rapido and Ola were asked to immediately stop their services for auto-rickshaws. Subsequently, the government also warned aggregators against finding vehicles traveling illegally,

“We welcome today’s court order, which recognizes that automotive drivers have the right to operate using aggregation platforms. It also recognizes that platforms like Uber may charge reservation fees, which allows them to cover their costs and continue to provide their services,” an Uber spokesperson said in a statement.

“Online cars are thriving in Bengaluru because of the value they bring to drivers and passengers, who prefer them because of the upfront price, the lack of haggling, and the security features that come with the app.”

The spokesperson added: “The commission caps threaten the viability of this vibrant email industry, which will impact the tens of thousands of motor vehicle drivers who depend on it for their livelihoods and cause this category to shrink. nascent. We will continue to engage with government to find ways to regulate the industry in ways that allow riders, drivers and platforms to benefit from technology that has truly transformed urban mobility.