A new tussle between Karnataka government and major cab aggregators Ola and Uber have come into play, where the state government has issued a notice to the ride-hailing companies for violating against rules for charging the time-based fare.
As per new traffic rules stated under Rule 11(a) of the Karnataka On-demand Transportation Technology Aggregators, cab companies cannot charge on the basis of time and hence the notice has been issued to the companies seeking an explanation for their policy of charging based on an average of Rs 1 per minute.
According to a statement cited by sources, “Licence holders have to collect hire charges from passengers as per fares fixed by the government. But companies are violating the rules. Appropriate action will be initiated against the errant cabs.”
When contacted Ola for a statement, they said,
We have received communication from the state transport department of Karnataka and are studying the contents of the same. We will shortly share the company’s response to the authority.
Meanwhile, Ola and Uber have been facing continuous troubles over the past year in convincing the state governments over their business operations. Given the recent notice from Karnataka, the market analyst believes that it will definitely impact the revenues in the state. At the same time, local taxi unions have also been continuously opposing the new price model which is adding to the turbulence.
Additionally, a news has surfaced that even Delhi government is speculating the operations of these companies and may impose a ban on ride-sharing services like Ola Share and UberPOOL, as part of its new City Taxi Policy under the purview of Motor Vehicles Act, 1988.
Hence, with opposition and aggression strikes in past two years and the ongoing tussle, coming times for the cab aggregators is definitely going to be a tough one.