Bangalore: Karnataka and its capital Bengaluru are once again projecting themselves as India’s tech- and new-economy-friendly hub, with another edition of a much-hyped investor summit beginning Wednesday.
But one side involving Uber and local transportation officials is sticking out like a thumbs-up, a reminder of how the state’s archaic laws still struggle to hold up to the position of being home to the most startups and ecommerce players in the country. are doing.
App-based mobility service provider Uber on Tuesday said the e-hailing auto rickshaw offering in Bengaluru is “under a cloud” and these services are likely to be limited to a few areas of the city, if transport officials are unable to charge the commission. Resolve the ongoing issue of
The app-based auto rickshaw service provider is currently working on a court intervention in Bengaluru and is fighting a protracted legal battle with the state government.
“Auto-rickshaws are an essential part of the Indian urban commuting landscape. While Uber started as a cab service in India using four wheelers, in the last few years we started offering auto services through our app. We have seen a thriving auto sector take shape as the service holds importance for drivers and riders alike. Despite these gains, the future of the e-hail auto sector in Bengaluru is in jeopardy,” said Nitish Bhushan, Head of Central Operations, Uber India and South Asia, wrote in a blog post on the aggregators site on Tuesday.
Bhushan said: “At present, Uber and other players in the city are operating under a stay order given by the Hon’ble High Court of Karnataka, when the Karnataka State Government announced a ban on aggregators to operate autos.”
Karnataka High Court on 14 October stayed The ban imposed by the Karnataka Transport Department a few days ago auto rickshaw services Provided by app-based aggregators. However, the court capped the convenience or booking fee for auto rickshaws provided by these platforms at 10 per cent of the fare, excluding Goods and Services Tax (GST).
After the Karnataka government’s ban on road auto rickshaw operators claimed that online aggregators were charging more than double the regular fare, the transport department turned a blind eye to the “excessive” rates.
ThePrint reached out to Karnataka Transport Commissioner, THM Kumar, for comment, but did not get revert till the time of publication of this report.
Uber under IT/BT or Transport?
While the minimum official fare for road auto rickshaws in Bengaluru is Rs 30 for a distance of two kilometers, followed by auto drivers in the city, with an additional charge of Rs 15 per kilometer. infamous To demand additional rent.
On the other hand, app-based aggregators increased their base fare to Rs 60 earlier this year and then added a convenience fee of Rs 40, taking the minimum fare to Rs 100.
However, this was reduced to Rs 30 after the government took action last month, taking the minimum fare to Rs 70, with an additional Rs 40 convenience fee, in line with the auto fares mandated by the government last month.
According to industry insiders, there are over 1 lakh auto rickshaws connected to the app-based platforms, which offer around 25 lakh rides every month in Bengaluru alone.
In Karnataka, there is still confusion over whether companies like Uber and Ola should be covered under IT/BT department rules or transport.
Startups and online companies have often sought relief from the courts, as was seen When the Basavaraj Bommai-led BJP government in Karnataka banned online gaming in September last year.
Karnataka High Court in February hit down The ban – based on the Karnataka Police (Amendment) Bill, 2021 – prohibits, among other changes, “any act or game of skill at risk of money, or otherwise unknown consequence of an event”, which added There have been apprehensions as it is proposed to include skill which was earlier only on the game of chance.
Uber has also said that the ongoing issue of convenience fees will help the company reduce the number of areas it can service.
“Currently, our commission in Bengaluru is capped at 10% of the rent collected. It is not financially sustainable. If our costs cannot be covered through commissions, we will have to find ways to reduce costs that may affect the experience of drivers and riders,” Bhushan wrote.
He added: “In the face of these commission caps, we may have to make the difficult decision to limit Uber Auto to the parts of Bengaluru where the service is viable. This will harm drivers and inconvenience riders who depend on aggregators for their commuting needs. ,
(Edited by Polomi Banerjee)
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