Why Ola, Uber and Rapido autos are banned in Karnataka

Days after Ola, Uber, and Rapido came into the spotlight over exorbitant fares in Karnataka, the state transport authority has said that app-based aggregators will not be allowed to provide autorickshaw hailing services from Wednesday.

Here is everything you need to know about the ban:

Why are Ola, Uber and Rapido autos banned in Karnataka now?

Even though Ola, Uber, and Rapido autorickshaws have been functioning in the state for a long time, the aggregation of three-wheelers was not covered by the licence given to the companies under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016.

Read | Ola, Uber, Rapido continue auto-rickshaw service despite ban in Karnataka

Lack of permission to operate the auto-rickshaw services led to the ban.

What happened after the ban?

Autorickshaw hailing services continued to be available on app-based aggregators Ola, Uber and Rapido a day after the Karnataka transport authority banned it.

Read | No Ola, Uber, Rapido auto service in K'taka from today

However, the number of autorickshaws logging into these apps seems to have come down as the waiting time in some places went up from an average of seven minutes to 12-15 minutes.

While the Transport Department had warned of a fine, the auto-rickshaw services were still available on the apps. However, several commuters said they had trouble accessing them.

Will autorickshaw drivers be punished for not following the order?

The three companies have agreed to stop aggregating autorickshaws starting from Wednesday. The Transport Department has warned that if the companies fail to keep their word they will attract a penalty of Rs 5,000 per vehicle.

Read | 'Politicians, aggregators hand in glove... looting us, commuters': Bengaluru auto unions demand ban on Ola, Uber, Rapido in 7 days

The department has cleared that no action will be taken against the autorickshaws. "Only the companies found to be aggregating them will have to pay penalties," it said.

What will happen to Ola, Uber, and Rapido next?

Ola, Uber, and Rapido have said they will soon submit fresh applications seeking permission to aggregate the autorickshaws.

These app-based aggregators have been banned from providing autorickshaw services until the government takes a decision on the matter.

"Ola, Uber, and Rapido said that they will soon submit fresh applications seeking permission to aggregate the autorickshaws. Their request will be forwarded to the state government. However, till the government takes a decision on the matter, the companies will not be allowed to provide autorickshaw-hailing services. This matter has been made clear to the representatives," Transport Commissioner T H M Kumar said.

On the autorickshaw drivers' demand to ban all the aggregator companies, an official in the Regional Transport Office said the court's stay orders do not permit such coercive action against the companies. "We can only take corrective actions," he added.

Will you be able to find cabs from these companies?

To a question on cab aggregators operating with a licence that expired a year ago, an official acknowledged that the companies do not have the licence to aggregate even the four-wheelers.

Even though the licenses of the cab aggregators expired last year, you will still be able to find cabs on these apps.

“Early disposal of the case (against the Aggregator Rules 2016) will help bring clarity in the transport sector. The department will soon bring the issue to the notice of the High Court of Karnataka. We hope to get this issue sorted out at the earliest,” he added.

(With DHNS inputs)