Karnataka’s Transport Department has issued show-cause notices to four major taxi aggregators over allegations that they are charging passengers fares above the rates fixed by the state government.
The notices were issued following complaints from taxi drivers’ and operators’ associations, which alleged that platforms were not following the government’s fare structure notified on February 3, 2024. The complaints also claimed that factors such as travel time and other variables were being used to determine fares.
Additional Transport Commissioner B P Uma Shankar said the companies have been directed to follow the prescribed fares and comply with the Karnataka on Demand Transportation Technology Aggregators Rules, 2016.
The aggregators have been given seven days to submit their explanations. If they fail to respond within the deadline, the department may initiate further action under Rule 11 of the 2016 rules.
The issue was discussed at a Transport Department meeting on August 4, where driver organisations demanded stricter enforcement of the government-approved fare structure. Representatives also alleged that companies including Ola, Uber and Rapido were not ensuring that drivers received earnings according to the prescribed system.
Meanwhile, the Union Ministry of Road Transport and Highways has directed cab and auto aggregators to remove features that encourage passengers to tip drivers before completing a ride. Platforms have been told that tipping options should be offered only after the journey, with the entire tip amount passed on to drivers without deductions.
The ministry has also warned aggregators against suggesting that tipping could result in faster ride confirmation, shorter waiting times or better service.
