The 10% commission cap imposed by the state government has led to Uber threatening to rescind its services in the city.
Story so far: The ride-hailing company said that in order to stay in business, it needs to charge 25% more than the metre fare in a proposal it presented to the Transport Department. For their auto-rickshaw services in the city, Uber and Ola are now permitted by the High Court of Karnataka to charge 10% more than the metre fare plus any relevant GST.
- Uber and Ola were discovered to be charging a base charge of ₹100, more than three times the ₹30 set by the government, which sparked the issue.
- The court prohibited the government from taking any coercive action against ride aggregators in the interim order.
What Uber said: According to Uber India and South Asia’s Head of Central Operations, Nitish Bhushan, the company won’t be able to function with the 10% commission for very long. In light of these commission caps, he noted in a blog post that they might have to decide to restrict Uber Auto to certain areas of Bengaluru where the service is sustainable.