Karnataka bans Ola, Uber, Rapido

Cab aggregators Ola, Uber, and Rapido have been accused of charging exorbitant fares from customers in Bengaluru. As a consequence, they have been declared illegal by the state government.

The government has passed an order saying that autorickshaw services run by cab aggregators are no longer legal from Monday. “They are charging upwards of Rs 100 as fare even when the distance is below 2 km,” a report says. 

In Bengaluru, for example, a fixed amount of Rs 30 for the first 2 km and Rs 15 per km thereafter is the legal fare.

Hours before the ban, BJP MP from Bengaluru, Tejasvi Surya wrote that auto rickshaws are the backbone of first and last-mile connectivity in Bengaluru. “We received many complaints recently regarding tech aggregators charging Rs 100 as the minimum charge against the fixed limit of Rs 30,” he added.

The move has been drawing a wide range of reactions. Deepak Shenoy, a CEO, said, “The ban is a sign that governments are not ready for free market pricing. Autos get their licenses to ferry people at government-dictated rates, so it’s not a free market for them at all by design.”