App-based auto ban in Karnataka leaves drivers confused, citizens frustrated

The base fare on a trip was changed from Rs 30 to Rs 60 last month (Representative image)

On a busy Wednesday morning, Inchara (name changed), a resident of HSR Layout in Bengaluru, tried booking an autorickshaw through the ride-hailing app Ola, as usual, to get to her office in Indira Nagar. Normally, she would get an auto in 2-3 minutes. But this time, it took her nearly 20 minutes to book an auto, which took another 15 minutes to reach her.

There is more.

“Immediately after reaching, my driver asked me to cancel the ride on Ola and pay him the same amount shown on the app. I agreed as I was rushing to work,” said Inchara, who did not want her real name published.

Inchara’s case is not an isolated one. Moneycontrol spoke to at least 20 regular Ola and Uber auto users, and around 15 confirmed similar requests from drivers.

“It took really long to get an auto. My apartment is far from the main road, so catching one (without an app) means I have to walk 2 km,” said Karthik S (27), a resident of Banashankari. He uses all three apps.

Karthik also noticed differences in the apps

"The fare was slightly lower and the apps now show a detailed breakup of the final amount,” he said, adding that the driver requested Karthik to cancel the ride, promising to drop him at the same location for the same amount.

All this is playing out a day after the Karnataka transport department termed Ola, Uber and Rapido autos ‘Illegal’ and issued a directive to the companies to apply for a separate three-wheeler license. The transport department had ordered the companies to stop auto services till the licences are approved and granted.

Transport commissioner THM Kumar clarified that the companies had been asked to stop plying auto services from Wednesday and that if the autos continued to run, the company would be charged a fine of Rs 5,000 per vehicle, per day for the first offense.

“I knew there was a ban, but when I checked the app I saw no changes, so I tried booking and I got an auto,” Karthik told Moneycontrol.

Drivers confused 

Auto drivers and users of Ola, Uber, and Rapido have expressed confusion amid a lack of proper communication from the companies on the continuation of services.

“Some say that drivers have to pay a Rs 1,000 fine if we pick up rides from Ola,” said Sridhar, 37, an Ola auto driver, expressing frustration over the lack of communication.

Another driver, Wasif Majood, said that he was stopped by traffic police while on a ride. “I asked the passengers to cancel the auto on the app as I got stopped by the police for using Uber,” he said.

Many auto drivers admitted that the app was very beneficial in terms of finding passengers. However, they expressed concerns over the excessive commission and platform fee.

“We need to pay Rs 20 every day to use the app and also around 30% commission goes to Uber or Ola. Money-wise it is not beneficial, however, I don’t have to roam around to get a passenger if I’m using the app,” said another driver, on condition of anonymity.

Multiple drivers said that proper communication or directives in terms of the future course of action will help clear the air around whether to pick up rides or not.

Ola, in an internal message to drivers of both cabs and autos, said "business can continue as usual".

“Clearing all the ongoing conversations we are running a business as usual. Please continue using the Ola platform and continue earning,” the message said in Kannada.

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

“Where are the guidelines? How to track the autos? And it takes some time to discontinue service. Many drivers are dependent on this,” said an industry source close to the development.

Uber and Rapido have not released any communications to drivers or users of their app.

Ola, Uber and Rapido did not respond to Moneycontrol’s queries.

Companies awaiting more details

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.

However, an industry source said that there is a lot of confusion and lack of clarity in terms of obtaining a licence.

“While applying for the cab licence there was some clarity on the rules that needed to be followed. However, there is no guideline from the transport ministry on this,” the industry executive said. The companies have also brought down convenience fees from Rs 40 to Rs 30-20 in the past two days, he added.

Auto unions mulling a new app

Multiple autorickshaw unions in Bengaluru have come together to develop their own mobile application, called ‘Namma Yatri’. According to sources, the Autorickshaw Driver Union (ARDU) has developed the app in collaboration with the 'Beckn Foundation', which is supported by Infosys co-founder Nandan Nilekani.

However, a senior official from the transport department clarified that any new app for autos will have to follow the same procedure for licensing.

“Any auto aggregator app will have to get a separate licence. Even the app that the unions are planning to launch should get a license before it can go out to the public. Otherwise, it is illegal,” the official said.

In fact, Karnataka transport minister B Sriramulu on Wednesday said that the government is mulling launching an auto aggregation app. The minister also said that the state will take strict action against aggregators Ola, Uber, and Rapido if they continue services.