Karnataka restrictions: Uber may restrict auto services in parts of Bengaluru

Ride-hailing service major Uber India on Tuesday said it may have to limit auto services in parts of Bengaluru as it may become impractical to run a business because of the 10 per cent fare cap commission order, said a blog post. Is .

“If our costs cannot be covered through commissions, we will need to find ways to reduce costs that can affect the experience of drivers and riders. In the face of these commission caps, we have to limit Uber Auto. To select the parts of Bengaluru where the service is viable,” said Nitish Bhushan, Head of Central Operations, Uber India and South Asia. blog post,

statement came a few days later Karnataka’s State Transport Authority sent notice Uber And Hailstone And other ride hailing aggregators say state laws allow technology platforms to aggregate only four-wheeled cars.

Uber India said that the move will hurt drivers and riders who depend on aggregators for their commuting needs.

The company said that customers get the benefit of doorstep pickup, and no longer have to go to the auto-rickshaw stand or hail the auto from the road.

“Every month, over one million residents of Bengaluru use Uber Auto to get around their city. They are served by over 50,000 auto drivers who supplement their earnings through Uber. However, drivers need to be compensated for the additional distance traveled by them and the time taken to provide these doorstep pickups,” said Nitish Bhushan.

The company said the current fixed meter fare does not adequately compensate drivers for the additional distance and time taken to pick up a passenger from their doorstep. Uber also said that cancellations increased after the commission was reduced.

“To be absolutely clear: our commission – our profit. A flexible commission structure, and one that ensures reasonable margins for aggregators, will ensure the sustainability of E-Hale Auto and encourage investment in the space, thereby launching new Features and Services.

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The Karnataka High Court on October 14 ordered the government not to take any coercive action, and asked companies to come up with a plan before the authorities would charge 10 per cent of the base fare as convenience fee along with 5 per cent GST as a temporary rule. Percentage charge allowed. ,

The court had given 15 days to the state government, regulators and cab aggregators to work out a fair pricing mechanism.

“Bengaluru deserves more travel options, not less,” it added.

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