Ola, Uber allowed to provide car service in Karnataka until government corrects the rate


Karnataka’s Supreme Court on Friday ordered the state government to set the rate for app-based auto rickshaw registration services within 15 days.

Authorities last week ordered online aggregators such as Uber, Rapido and Ola to immediately stop their auto rickshaw services.

The aggregators were also warned that action would be taken if cars were found violating the warrant.

The government had alleged that auto rickshaws were not covered by the license issued in 2016 under the Karnataka On-Demand Transportation Technology Aggregator Rules.

ANI Technologies Private Limited, which offers service through the Ola app, and Uber India Systems had challenged this in two separate Supreme Court petitions.

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Justice MGS Kamal, hearing the petitions on Thursday, suggested that the authorities and the companies come to a compromise and submit a joint proposal.

The government had agreed to talk to the aggregators.

On Friday, Karnataka’s Supreme Court ruled that the government must take into account the suggestions of all stakeholders when setting the rate within 15 days.

The High Court also ruled that no coercive measures would be taken against the aggregators until the rate is established. The case was adjourned.

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Last week, the government of Karnataka ordered app-based taxi aggregators such as Ola, Uber and Rapido to stop their ‘illegal’ auto rickshaw announcement services in the city with immediate effect, citing violations of standards.

The move came after many passengers complained that they were being overcharged by the auto rickshaws that operate under apps such as Ola and Uber.

The Karnataka State Road Transport Authority sent a notice to the companies last Wednesday, stating that the taxi aggregators have been granted permission to perform the internet-based application taxi aggregator services under the Karnataka On-Demand Transportation Technology Aggregators Rule- 2016.

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According to the rules, only taxi services may be provided and taxi means a motor cab with a capacity of no more than six passengers, excluding the driver with a public service license on contract, the order said.

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