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Ola, Uber drivers fret over 5% convenience fee on each autorickshaw ride

The Karnataka government on November 25 directed the regional transport authorities to charge five per cent convenience fee and GST from the ride hailing companies on each autorickshaw ride by the passengers.

November 27, 2022 / 16:45 IST
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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 Ola Uber Drivers and Owners' Association (OUDOA) and the autorickshaw drivers linked with the ride-hailing companies are apprehensive about the five per cent convenience fee and Goods and Services Tax levied on every autorickshaw ride taken up by passengers.

The Karnataka government on November 25 directed the regional transport authorities to charge five per cent convenience fee and GST from the ride hailing companies on each autorickshaw ride by the passengers. OUDOA president Tanveer Pasha blamed the state government for not presenting the case properly before the Karnataka High Court.

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The government should have brought an amendment to the Karnataka On-Demand Transportation Technology Aggregators’ Rules because there is no provision for autorickshaw in it, Pasha told PTI. ”If they (transport department) had given proper information to the court, then the court would have directed the government to bring an amendment to the rule,” he said.

Pasha also alleged that the transport department did not take on board the Regional Transport Authority, Bengaluru Urban district, whose chairman is the deputy commissioner of Bengaluru Urban district while passing the direction. In the existing scheme of things, the charge for every kilometre while riding an autorickshaw is Rs 15.