Convenience Fee For App-Based Auto Rides To Be Finalised Soon

Amid the ongoing tussle between the Karnataka government and ride-hailing apps, the former is likely to finalise, in a day or two, the convenience fee that the latter can charge customers who book auto rides through their platforms.

The transport department of the Karnataka Government will have to file an affidavit before the High Court on Friday regarding the fee that companies like Ola and Uber can ask customers booking rides through their platforms, ET reported.

Last month, the Karnataka Transport Department issued a notice to Uber, Ola and Rapido, directing them to stop app-based auto rickshaw services in the state for overcharging customers.

Later, Uber and Ola’s parent company ANI Technologies filed writ petitions in the Karnataka High Court, challenging the state government’s notice.

The court asked the state government to hold talks with Uber and Ola over auto fares in the state and allowed the app-based auto aggregators to continue their operations until the state government fixes fares as per relevant law.

The Karnataka HC also allowed the companies to charge 10% of the base fare as convenience fee, besides 5% GST, as compared to a flat rate of INR 40 per ride.

Now, the case is scheduled for hearing before Justice CM Poonacha on Monday.

Before the state government finalises its stance before the court, senior transport officials are expected to brief CM Basavaraj Bommai on the subject either on Thursday or Friday.

While senior transport authorities had a meeting with the aggregators last month, they reportedly sought a convenience fee of 20% on auto fares, excluding GST. However, the government officials are in favour of the convenience fee capped by the high court.

The officials are of the view that a 10% convenience fee works well for both consumers and businesses. In this situation, the CM’s view will play a significant role.

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