The Karnataka government has allowed app-based auto aggregators to collect 5% service charges on fares capped by the government.
Story so far: A directive from the Karnataka transport department permits all app-based auto aggregators, including Ola, Uber, and Rapido, to add 5% service fees to government-capped auto tariffs. As GST, there will be an additional 5% fare charge.
- The Karnataka High Court previously gave the app aggregators permission to operate their auto services for an additional 10% tariff on top of the fixed government prices, excluding GST.
- The transport department was subsequently told by the court to establish new auto prices for app-based aggregators.
Past response: Uber, a multinational cab aggregator, had stated its intention to limit auto services in specific Bengaluru neighbourhoods in November. The company had voiced its disapproval of the Karnataka government’s 10% commission cap law in a statement posted to its website.