Meanwhile, the Karnataka Transport Department has taken action against ride-hailing and mobility platforms Ola, Uber and Rapido for allegedly charging passengers more than the government-ordered ticket prices.
The department has issued notices to the aggregators and has given them seven days to respond. Failure to provide a satisfactory response could lead to action against their aggregator licences, including cancellation, officials have said.
This follows complaints from auto driver associations about the fare practices of major ride-hailing platforms.
The complaints say passengers are being charged much higher amounts than government-ordered fares, especially in times of high demand when they are more than double those of the government.
Transport Department Issues Notices
With the fares on ride-hailing apps getting increasingly complained about, the decision to escalate the issue was taken to a higher level.
The Transport Department had outlined fare structures for aggregators in February 2024. The government-fixed rates were intended to provide a framework for passenger fares and also ensure that drivers receive appropriate earnings.
But transport officials have said that some aggregators are not following the fare structure and are collecting more money from passengers.
The department has now asked companies for an explanation and warned them not to skirt government regulations, or be seen as failing to do so could be catastrophic.
Government-Approved Fare Structure
Under the fare structure cited by the department, different rates were prescribed based on the value of the vehicle.
For vehicles valued below ₹10 lakh, the fare for the first four kilometres is ₹100.
For vehicles between ₹10 lakh and ₹15 lakh, the four-kilometre fare was fixed at ₹150.
For vehicles valued above ₹15 lakh, the four-kilometre fare was ₹130.
The department claims aggregators are collecting more than the prescribed rate.
The fare issue has become particularly contentious as passengers are frequently charged different prices from ride-hailing apps according to vehicle availability and other factors.
Auto Driver Associations Raise Complaints
The latest action came after auto driver associations also filed complaints against Ola, Uber and Rapido.
Driver representatives have expressed concern not only about passenger fares but also about the amount drivers will actually receive after deductions and platform-related charges.
According to the complaints, drivers may not always receive what they think is a fair share of the fare paid by passengers.
The associations therefore have argued that the government should enforce fare rules more effectively and ensure pricing transparency.
Seven-Day Deadline
The Transport Department has given companies seven days to explain their position according to the notice.
If the companies do not respond within the specified period or the department believes their explanation is not satisfactory, they have warned that further action could follow.
This may include proceedings affecting the companies' aggregator licences.
The warning is a significant escalation in government policy on app-based mobility platforms.
Impact on Bengaluru Passengers
Ola, Uber and Rapido are popular with residents and visitors while commuting across Bengaluru and other parts of Karnataka.
Passengers use these platforms for convenient booking, digital payments and doorstep pickup.
However, fare increases can be a major concern, particularly for passengers travelling during peak hours or periods of high demand.
If the Transport Department strictly implements the fare structure, passengers could see changes in the prices displayed on these platforms.
At the same time, the firms may argue that their pricing systems take into account operational costs, driver availability and market conditions.
What Happens Next?
The immediate focus will be on the responses submitted by Ola, Uber and Rapido to the Transport Department.
The authorities are also expected to investigate if the companies have breached fare rules and whether their pricing is in line with the conditions for aggregator licences.
The warning has also brought into focus the importance of app-based transportation service transparency.
For passengers, it’s ultimately about whether they are charged fares in accordance with government regulations. For drivers, the focus is on ensuring they receive a fair share of the money paid by customers.
The coming days could therefore be very important for Karnataka’s app-based transport sector.
If the companies do not satisfy the authorities, the Transport Department could proceed with stricter regulation. If the companies provide a satisfactory explanation and comply with the rules, the dispute could be resolved without licence cancellation.
For now, the seven-day notice period has put Ola, Uber and Rapido under increased regulatory scrutiny in Karnataka.
