BENGALURU: Karnataka’s transport department has moved against major taxi aggregators over allegations that the ride hailing platforms are charging passengers fares beyond the rates fixed by the state government, officials said on Thursday.
Show Cause Notices Issued to Taxi Aggregators in Karnataka
The Karnataka transport department has issued show cause notices to four taxi aggregators, including Ola, Uber, and Rapido, following complaints from taxi drivers’ and operators’ associations. These complaints allege that the companies have strayed from the government-mandated fare structure established on February 3, 2024, by incorporating travel time and other variables into their pricing models.
Additional Transport Commissioner B P Uma Shankar stated that the department’s actions are a response to these complaints, mandating the aggregators to adhere to the prescribed fares as well as the Karnataka On Demand Transportation Technology Aggregators Rules, 2016. “The notices have been issued based on complaints regarding alleged violations of the government notified fare structure,” Uma Shankar explained.
The issue was raised during a transport department meeting on August 4, where representatives from driver organizations, including the Bengaluru International Airport Taxi Owners and Drivers Welfare Association, emphasized the need for strict enforcement of the fare structure. Narayanaswamy, president of the Karnataka Drivers Federation, had previously highlighted these concerns in a representation to the government on March 16, asserting that the aggregators were failing to ensure that drivers received earnings aligned with the mandated fare system.
Officials noted that the issuance of these notices is part of a regulatory process, and further action will be taken once the companies respond. As of Thursday, the aggregators had not provided any feedback. Additionally, the ministry indicated that promotional practices such as “Advance Tip” and messages suggesting that tipping could expedite ride confirmations may conflict with the Motor Vehicle Aggregator Guidelines, 2025.
