Karnataka Transport Department Issues Notices to Ola Uber Rapido and Namma Yatri
Karnataka has sought explanations from major ride hailing platforms over allegations of charging passengers above government approved fares and failing to follow notified pricing rules.
The Karnataka Transport Department has issued show cause notices to major ride hailing aggregators including Ola, Uber, Rapido and Namma Yatri over alleged violations of government prescribed fare rules. The action follows complaints from taxi and driver associations about passengers being charged more than the notified rates.
The dispute centres on the fare structure notified by the Karnataka government on February 3, 2024. Driver groups have alleged that some platforms are using factors such as travel time and other pricing calculations instead of following the government approved fare system.
The issue gained further attention after a meeting held on August 4, when vehicle driver associations urged the Transport Department to take action against aggregators. The associations also asked the department to ensure that passengers are charged according to the officially notified rates.
The Kempegowda International Airport Taxi Owners and Drivers Welfare Association was among the groups seeking action. It alleged that platforms including Ola and Uber were not following the notified fare structure and were instead relying on time based calculations.
A separate representation was also submitted on March 16 by Karnataka Drivers Federation state president Narayanaswamy. The representation raised concerns about Ola, Uber, Rapido and Namma Yatri and alleged that the platforms were not ensuring driver earnings in line with government prescribed fares.
The notices direct the aggregators to comply with the government approved fare structure as well as Rule 9 of the Karnataka On Demand Transportation Technology Aggregator Rules, 2016. The department has given the companies seven days from the date they receive the notices to submit written explanations.
The department has also warned that failure to respond within the specified period could lead to further action under Rule 11 of the 2016 rules. According to department sources cited by The Times of India, responses from the aggregators had not been received at the time of the report.
For passengers, the development could bring renewed attention to how fares are calculated on ride hailing apps in Karnataka. The immediate focus, however, remains on the explanations that the companies are required to submit before the department decides its next step.
