Uber, Ola, Rapido Continue Auto Services Despite Karnataka Govt's Ban

Online booking of auto-rickshaw services continued to be available on ride-hailing platforms such as Uber, Ola and Rapido, despite Karnataka government making such services illegal from Wednesday, following multiple complaints of overcharging.

However, the number of auto-rickshaws using these platforms seemed to have come down as the waiting time in some places in Bengaluru went up from an average of seven minutes to 15 minutes. Some auto drivers continue to use the apps discreetly, while others welcomed the move from the government, according to the sources.

Bengaluru is estimated to have about 200,000 autorickshaws out of which around 100,000 offer services through ride-hailing platforms. There are over 25 lakh riders who use the auto-rickshaw services provided by the aggregators.

“With or without Ola/Uber auto, in #Bengaluru #autorickshaw don't ply without asking for more than the actual rates. Have been looking for an auto from half an hour, not a single auto wants to ply to Koramangala from Arakere,” said Sanketh Hiremath on Twitter on Wednesday.

Uber and Ola had told the government that they have complied with the rules and reduced their minimum auto fare for the first two km back to Rs 30. Interestingly, Uber, Ola and Rapido are now informing customers about the base fare and the convenience fee that they are charging. These players have reduced the convenience fee from Rs 40 to Rs 20-Rs 30, according to the sources.

“Rain or shine, our autos will make sure you stay fine. With doorstep pick up and drop to your location,” Rapido informed its customers through the app on Wednesday.

Transport Commissioner T H M Kumar had announced that the three firms--Uber, Ola and Rapido-- agreed to stop providing the auto-ricksfeature to hail auto-rickshaws on their platform starting from Wednesday.

“A letter was issued by the transport department to Uber, Ola and Rapido which clearly said that they need to shutter operations immediately till an auto-licence is issued to them,” said an industry source. “They were told to file an application to get the auto-licence.”

The transport commissioner pointed out that there is no scope for the mobility players to offer autorickshaw services on their platform under the Karnataka On-Demand Transportation Technology Aggregators Rule (KOTTAR), 2016. They have to give a fresh application to resume autorickshaw services.

The Karnataka government warned app cab aggregators that it would be imposing a fine of Rs 5,000 on vehicles found operating illegally.No action will be taken against the autorickshaws and only the firms found to be aggregating them will have to pay penalties. The transport department had even said that it will write to cyber division to stop auto rickshaw services because it cannot do it directly.

Uber on Wednesday evening said that autos play a vital role in India's transportation needs. “We stand ready to work with the government to ensure that the benefits of e-hailing extend to the auto industry and particularly to the tens of thousands of drivers and several lakh riders who rely on aggregator apps such as ours,” said an Uber spokesperson. “The people of Bengaluru have made it clear that they value door-step pick-ups, no haggling and around-the-clock support that platforms like Uber bring to serve the mobility needs of the city,” added the Uber spokesperson.