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Relief for Ola and Uber as Karnataka High Court stays auto ban

This interim order states that no-coercive action like the present blanket ban on plying autos should be taken against the aggregators.

October 14, 2022 / 07:36 PM IST
Both Uber and Ola are currently facing the ire of customers in India for random surge pricing. (Image source: Reuters/Representative)

Both Uber and Ola are currently facing the ire of customers in India for random surge pricing. (Image source: Reuters/Representative)

The Karnataka high court on Friday allowed app-based auto aggregators Ola and Uber to continue their operations in the state until the Karnataka Government fixes fares as per relevant law giving a huge relief to the companies.

This interim order states that no-coercive action like the present blanket ban on plying autos should be taken against the aggregators. Moreover, the high court has allowed the companies to charge 10% of the base fare as a convenience fee along with 5 per cent of GST as a temporary rule before the authorities come up with a plan.

Earlier the companies were charging a flat rate of Rs 40 per ride as a convenience fee.

“Commission caps threaten the viability of this vibrant e-hailing sector, which will impact tens of thousands of auto drivers who rely on it for their livelihoods and will result in the shrinking of this fledgling category,” said Uber’s spokesperson in a statement on Friday.