Uber threatens to restrict auto rickshaw services to select parts of Bengaluru

BENGALURU: As the logjam between the Karnataka transport department and app-based auto rickshaw aggregators over fare structure continues, Uber on Tuesday threatened to restrict auto services to select parts of Bengaluru.
Nitish Bhushan, head of central operations, Uber India & South Asia, stated that platforms will not be able to viably operate with the current 10% commission cap.
"Currently, our commission in Bengaluru is capped at 10% of the fare collected. This is not financially sustainable. If our costs cannot be covered through commissions, we will have to find ways to offload costs that could impact the experience of drivers and riders. In the face of these commission caps, we may have to make the difficult decision to limit Uber Auto to select parts of Bengaluru where the service is viable. This will hurt drivers and inconvenience riders who depend on aggregators for their commuting needs," said Bhushan.
"Every month, over 10 lakh residents of Bengaluru use Uber Auto to get around their city. They are served by over 50,000 auto drivers who supplement their earnings via Uber. However, drivers need to be compensated for the additional distance they travel and time they spend for providing these doorstep pickups" he adds.
It may be recalled that the Karnataka high court permitted aggregators to operate autos by charging 10% more than the base fare fixed by the government plus the applicable tax (5% GST).