The state government had claimed before HC that app-based aggregators were charging more than the rates fixed by the authorities by levying surcharge
The Karnataka government on Friday decided to allow app-based aggregators to charge a convenience fee of 5% on customers who book auto rickshaw rides through their platforms in Bengaluru, said a media report.
Economic Times said High Court will take a final call on this matter.
The transport department had recently directed stopping of auto-hailing services as it was not covered under the Karnataka On-Demand Transportation Technology Aggregator Rules in 2016. The licences issued were only for cab-hailing services, the department had held.
The service providers had approached the High Court which had allowed them to continue the services till the government took a decision regarding licences to be issued after speaking to all stakeholders.
The government also requested the court not to issue orders regarding the hike in rates sought by the service providers till the decision was made by the authorities.
ANI Technologies Private Limited and Uber India Systems Private Limited had challenged the transport department’s decision to stop autorickshaw-hailing services before the court. On October 6, the authorities after a meeting issued an order stating autorickshaw and cab services available under the online apps violated the KODTTA rules and licence.
It was held that ‘taxi’ service was only for cars and not autorickshaws. The government had claimed before the court that app-based aggregators were charging more than the rates fixed by the authorities by levying surcharge. They had not obtained licence for aggregating autorickshaws and therefore their services have been stopped.
