The Ola, Uber, and Rapido car services have been branded "illegal" by the Karnataka government. The companies apparently received warnings from the state government ordering them to stop providing the services in three days.
The Ola, Uber, and Rapido app-based cab and bike aggregators have been ordered to stop providing auto services by the Karnataka state government, which has once again deemed those services to be illegal.
"Auto services shall be discontinued and not charge passengers more than the fare stipulated by the government," read a notice from the Karnataka State Transport Department. The aggregators have been given three days by the agency to submit the compliance reports.
According to reports, commuters have protested to the state government about the businesses' base fares, which start at a minimum of Rs 100. Auto drivers are permitted to charge a fixed rate of Rs 30 for the first two kilometres and Rs 15 for each additional kilometre, in accordance with government regulations.
According to the state police officials, ride aggregators are not permitted to operate auto services because the regulations only apply to taxis.
The three businesses have not yet returned calls regarding this development.
An Ola source claims that business will continue as usual for the ride-hailing company. However, the business has formally declined to comment on the current problem.
The services provided by the aggregators have previously been referred to be "illegal". Since 2016, the aggregators have had disagreements with the state government, the most recent of which was in March 2019.
The parent company of Ola, ANI Technologies, was notified by the regional transport department to halt its app-based cab services in the city in a letter dated March 18, 2019.
The two-page letter claimed that the ride-hailing app had been using allegedly "fake licences" to operate bike-taxi services unlawfully. It stated that the company's licence would be suspended by the transportation department for the following six months, thereby prohibiting all of its services. The Karnataka Motor Vehicles Act is in violation of the app-based services, according to the department's warning.
Local taxi drivers reportedly intend to launch their own mobile application called "Namma Yatri." These reports have not been independently verified by YourStory.