Are Ola and Uber Illegal?

Nowadays people are extremely dependent on app-based cab and bike aggregators such as Ola, Uber, Rapido, etc because of the easy accessibility and on-demand services, but have you ever thought about what will be the consequences if they stop working in your city? That’s exactly what is about to happen in Bengaluru, where the Karnataka transport Department on Thursday issued a notice and declared the auto services of the app-based cab and bike aggregators "illegal" and asked ANI Technologies, who is the parent company of Ola, Uber, and Rapido to stop the services in the next three days.

This decision has been taken after several complaints were registered about the overcharging by these apps. Commuters are charged a minimum of Rs 100 by the Ola and Uber aggregators, even when the distance is less than 2 kilometres. However, commuters need to pay Rs 30 for the first 2 km, a price that is fixed in the City, and Rs 15 for every kilometre after that.

A total of nearly 292 cases of overcharging have been registered on these apps by citizens. Also, people of the state have filed several complaints through emails to the top officials and the chief minister regarding the same matter. Transport commissioner THM Kumar has said they have granted licenses to these firms under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, to run only taxis. The rules do not apply to autos.

Meanwhile, as a solution to the matter, the auto union of Bengaluru is about to launch a mobile app called “Namma Yatri” on November 1 by the Autorickshaw Drivers Union (ARDU) in partnership with Nandan Nilekani-backed Beckn Foundation.

ARDU President D Rudramurthy in an interview said, “Our union plans to launch the Namma Yatri app from November 1. We’ll follow the government-fixed fare and collect an additional Rs 10 as pick-up charges. We also plan to launch a flat Rs 40 fare in a 2 km radius between Metro stations and residence/office.”

The Transportation Department also warned the auto drivers in the city not to charge passengers in taxis more than the fare prescribed by the government, or else legal action will be taken if they fail to comply with the order.