State transport dept sends notice to aggregators for overcharging

Bengaluru: The Karnataka transport department has issued show cause notices to four major taxi aggregators, accusing them of overcharging passengers beyond the rates set by the state government. This move follows complaints received from taxi driver and operator associations. The allegations state that the aggregators have altered the fare structure notified by the government on February 3, 2024, by incorporating additional variables into the fare calculation, such as travel time.

B P Uma Shankar, the Additional Transport Commissioner, clarified that the department acted upon these complaints and mandated the companies to adhere to the prescribed fares and the Karnataka On Demand Transportation Technology Aggregators Rules, 2016. The companies have been given seven days to respond with their explanations, and non-compliance may lead to further actions under Rule 11 of the rules.

The complaints were deliberated on during a transport department meeting on August 4, where driver organizations pressed for the enforcement of the government's fare structure. Notable associations involved in the discussions include the Bengaluru International Airport Taxi Owners and Drivers Welfare Association and the Karnataka Drivers Federation.

The department is currently probing the fare calculation methods across these platforms, particularly scrutinizing the impact of journey duration and other factors on the final passenger charges. As of Thursday, no response had been received from the aggregators. This action by the state aligns with the Union ministry of road transport and highways, which has separately directed cab and auto aggregators to eliminate features that encourage passengers to tip drivers prior to completing a ride.

While passengers are still allowed to tip drivers, the option should only be presented post-journey, and aggregators must ensure that the complete tip amount reaches drivers without any deductions. Platforms have also been cautioned against creating an impression, intentionally or unintentionally, that tipping can result in faster ride confirmation, shorter waiting time, or superior service, all of which are strictly prohibited under the Motor Vehicle Aggregator Guidelines, 2025, and the Consumer Protection Act, 2019.