THIS STATE GOVERNMENT BAN the Ola, Uber and Rapido taxi service; calls them ‘illegal’


New Delhi: The government of Karnataka has declared app-based taxi and bicycle aggregators, including Ola, Uber and Rapido, illegal and called on them to cease their services within the next three days. According to the media, the State Transport has sent messages to the companies.

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“Car services must be discontinued and also not to charge passengers more than the rate prescribed by the government,” the ministry said.

State Transport Authority received several complaints from commuters about Ola and Uber charging around Rs 100 for a ride of less than 2 kilometers. It should be noted that the minimum car fare is set at Rs 30 for the first 2 km and Rs 15 for every kilometer thereafter in Bengaluru.

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The taxi aggregators will be given three days to close their business and completely cease their services statewide. State police authorities also said these companies are not eligible to drive auto rickshaws as the rules only apply to taxis.

A month ago, The Competition Commission of India (CCI) warned Indian taxi aggregators (CAs) such as Ola, Uber, etc. to formulate clear and transparent policies regarding revenue sharing due to price increases.

According to the department’s warning, taxi companies must stop providing car services as soon as possible and also not charge taxi customers more than the set fares. In addition, the department threatened legal action if they did not comply with the directive.





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