Karnataka Might Build Its Own Auto Aggregator App

According to the state’s transport minister B Sriramulu, the Karnataka government might develop an app to help auto-rickshaw users amid the ongoing row with auto-rickshaw aggregators Uber, Ola and Rapido over licencing norms and exorbitant pricing.

Sriramulu’s statement came in response to local TV channels in the Gadag district, where he clarified that the government would not tolerate illegal operations by app-based aggregators.

This is the second time the transport minister has issued a warning to Uber, Ola and Rapido in about five days. 

In a statement late last week, Sriramulu said that the transport authorities would seize the autos that were found to be operating on aggregators’ platforms despite the government order.

While the state government announced a ban on app-based autos, which came into force on October 12, the aggregators have not stopped their operations.

As Inc42 checked today, auto-hailing services were available in Bengaluru for all three of the aggregators. However, the companies have started to add fare details while availing of the service.

In the note, Uber said, “Fare includes: Min fare till 2 km – Rs.30 | Fare per km – Rs.15 | Night time charge of 1.5X applicable from 10 pm to 5 am | 5% GST on trip fare | includes Uber booking fee”

It seems that the app-based aggregators have brought the basic fare down to the government-prescribed levels. The Karnataka government has fixed the minimum auto fare at INR 30 for the first two kilometres and INR 15 for every subsequent kilometre.

“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,” it added in a statement.

The three companies are not out of hot water, having reduced their fares to match government fares. Earlier this week, the Karnataka transport department asked Uber, Ola and Rapido to appear before it for a trial. The hearing started on October 11.

The state’s home minister Araga Jnanendra also held a high-level meeting earlier this week with officials from the transport and police departments. The meeting increased the speculation that the government might launch an operation to curb the operations of app-based autos in the state.

In the meanwhile, the authorities have also suggested the three aggregators apply for a licence to offer auto-rickshaw services in the state, according to an ET report.

The reason why the state government has called their services illegal is that all of them have cab aggregator licences, which do not have provisions for aggregators to provide auto-rickshaw services. This also provides a faster resolution than amending the cab aggregator licencing norms.