Transport dept pulls up Ola, Uber for violating rules

BENGALURU:In a step that could bring major relief to thousands of commuters across the city who face exorbitant rates from app-based taxis to commute to work, the Transport Department on Thursday issued a show-cause notice to taxi aggregators Ola and Uber, asking them to explain why they continue to charge fares based on ride time instead of a flat fare based on kilometres travelled, as mandated by the department.

Hailing a taxi, according to commuters, becomes an almost impossible task during monsoon and in many cases surge prices are unaffordable. Both Ola and Uber charge ‘ride time’ charges which are payable per minute. This is in addition to normal fares per kilometre and a base fare. On Saturday, both aggregators had ride time charges of around `1.18 per minute.

These charges are against the rules laid down in the Karnataka On-Demand Transportation Technology Rules 2016, according to the transport department. While both companies applied for and were issued licences under the rules, the rules were then challenged in court. However, a statement by the Transport Department issued on Saturday clarified that the companies were bound to operate as per the terms and conditions imposed in the rules.

“Ola and Uber are violating rules and collecting fares on the basis of time. Notices have been issued under rule 11(a) of the aggregator rules. On receipt of the explanation, appropriate action will be initiated against the erring parties,” the statement from the transport department said. In the past, the Transport Department has issued similar notices at least two times to both companies on similar issues. However, there has been no punitive action taken by the department yet.