What happened with Uber, OLA, and Rapido? | The Karnataka government sent notices to cab service companies.

What happened with Uber, OLA, and Rapido?

Democracy means that the public is the master of democracy. When the public goes against or after someone, the company or any organization has to back down. Something similar has been seen and heard in Karnataka, India. You must have used cabs, autos, and taxis to go anywhere. 

You must have used the app-based Ola, Uber, and Rapido indiscriminately, but the decision of the Karnataka government has worsened the condition of these three cab service companies. Passengers traveling in Ola, Uber, and Auto had complained to the state government in Karnataka that these companies charge a minimum fare of ₹100 even for a distance of fewer than two kilometers. 

Whereas the Karnataka government has already made rules regarding rent. According to the government rate, cab service companies can charge ₹30 for the first two kilometers and ₹15 per kilometer after that, but the complaint found that cab service companies were charging ₹100 instead of ₹30. That is, ₹ 70 more users were being charged. 

The government took cognizance of the matter and sent notices to the companies providing cab services. They were ordered to stop their auto services in Karnataka within three days. After this order, as if there was a stir in these companies. Immediately there was a meeting between the representatives of these companies and the government. After the intervention of the Karnataka government, Ola, Uber, and Rapido decided to reduce their base rates.

You should know what has changed now. There are three components to an auto fare on any given journey. First the base fare, second the mandatory per kilometer fare imposed by the government, and third the booking or convenience fee charged by the aggregator. After the intervention of the government, the minimum base fare was increased to ₹ 60. And after public protest, it has been reduced to ₹ 30 per ride.

The convenience fee has been kept fixed at ₹40 as before without any tampering. That is, even if the distance is less than the first two kilometers, these companies used to charge a minimum fare of 100. That will now come down to ₹70. That is, the basic fare for online booking rides, which used to be 100 earlier, will now be reduced to ₹ 70.

However, it is important to know the side of the companies as well. The reason behind increasing the fair price is the rising oil price and increasing the income of auto drivers. Companies are also giving the reason for the increase in the cost of pickup. Please note that booking with cab aggregators also includes a pickup component as compared to directly booked autos. 

Recently, due to rising crude oil prices, there is a huge increase in the price of petrol and diesel, which has increased the cost of pickup. Apart from this, the pickup distance is also increasing after covid-19. For this reason, the companies providing cab services had increased the prices. However, now the situation has been brought under control. 

Now you will be able to get cab services in Karnataka without any restrictions and for this, you will have to pay a low price. We hope you like the information, If you have any question please comment on our site www.tradeipohub.co.in. Thanks for reading.