Ola, Uber and Rapido-run autos continue services despite ban in Karnataka

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

Despite a state-wide ban by the Karnataka Transport and Road Safety Department on aggregators Ola, Uber, and Rapido-run autos, passengers and auto drivers continue to use the App for bookings.

Industry sources said that the business was usual barring some reluctance from a few drivers to pick up rides. However, the app service for autos was not disabled.

In an official statement, Uber said that the company is ready to work with the government to continue its three-wheeler auto services.

“Autos play a vital role in India's transportation needs. We stand ready to work with the government to ensure that the benefits of e-hailing extend to the auto industry and particularly to the tens of thousands of drivers and several lakh riders who rely on aggregator apps such as ours,” said Uber’s statement on October 12.

The people of Bengaluru have made it clear that they value door-step pick-ups, no haggling, and around-the-clock support that platforms like Uber bring to serve the mobility needs of the city, the statement added.

Interestingly, Ola has said that the ‘business can continue as usual"  in an internal circular to the driver partners. Moneycontrol has seen the internal message circulated in Kannada.

“Clearing all the ongoing conversations we are running a business as usual. Please continue using the Ola platform and continue earning,” the message said. However, the message is sent to both cab and auto drivers.

One industry source said that there is still a lot of confusion in terms of fee charges and deadlines.

The Karnataka Transport and Road Safety Department on Tuesday directed the cab aggregators Ola, Uber, and Rapido to apply for separate licences to run and operate three-wheeler autos on their respective platforms.

"We discussed with the companies (Ola and Uber) with regards to pricing and licence. After reviewing we have directed the companies to apply for an auto aggregator license within the next one day, " Said T H M Kumar, commissioner of Karnataka Road Transportation and Safety.

The Transport Department has reiterated its stance that the aggregator-run three-wheeler autos are illegal and said that they cannot run under the cab aggregation licence. "The companies should apply for the licence to the Transport Department immediately, we will process it and send it to the Central Government. Till then no autos should run through the aggregator platforms, " the commissioner said.