State transport dept sends notice to aggregators for overcharging
BENGALURU: Karnataka’s transport department has moved against major taxi aggregators over allegations that the ride hailing platforms are charging passengers fares beyond the rates fixed by the state government, officials said on Thursday
The Karnataka transport department has issued show cause notices to four major taxi aggregators, including Ola, Uber, and Rapido, over allegations of overcharging passengers beyond the rates set by the state government. The department received complaints from taxi drivers' and operators' associations, alleging that the platforms deviated from the fare structure notified on February 3, 2024, by using travel time and other variables to determine charges.
The Karnataka On Demand Transportation Technology Aggregators Rules, 2016, require the aggregators to comply with the prescribed fares and the rules. The companies have seven days to submit their explanations, and failure to do so may result in further action under Rule 11. The department is currently examining how fares are calculated across the platforms and has directed the aggregators to pass the full tip amount to drivers without deductions.
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