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.HT ImageThe department has issued show cause notices to the four aggregators following complaints from taxi drivers’ and operators’ associations. The complaints allege that platforms have deviated from the fare structure notified by the government on February 3, 2024, including by using travel time and other variables while determining charges.Additional transport commissioner B P Uma Shankar said the department had acted on the complaints and required the companies to comply with the prescribed fares and the Karnataka On Demand Transportation Technology Aggregators Rules, 2016.“The notices have been issued based on complaints regarding alleged violations of the government notified fare structure. The aggregators have been directed to comply with the prescribed fares and the provisions of the Karnataka On Demand Transportation Technology Aggregators Rules, 2016,” Uma Shankar said.The companies have seven days from receiving the notices to submit their explanations. They have also been directed to comply with Rule 9 of the 2016 rules. Failure to respond within the deadline will be treated as failure to provide an explanation, after which the department may initiate further action under Rule 11.The complaints were discussed at a transport department meeting on August 4, where representatives of driver organisations sought enforcement of the government’s fare structure. The Bengaluru International Airport Taxi Owners and Drivers Welfare Association was among the groups calling for action.Karnataka drivers federation state president Narayanaswamy had also raised the issue in a representation to the government on March 16. He alleged that aggregators including Ola, Uber and Rapido were not ensuring that drivers received earnings in accordance with the government prescribed fare system.The department is examining how fares are calculated across the platforms, including allegations that journey duration and other factors influence the final amount charged to passengers.Officials said the notices are part of the regulatory process and that further action would be considered after the companies submit their responses. As of Thursday, no response had been received from the aggregators.The state action comes as the Union ministry of road transport and highways has separately directed cab and auto aggregators to remove features that encourage passengers to tip drivers before a ride is completed.The ministry said options such as “Advance Tip” and messages implying that a tip could lead to quicker ride confirmation may be inconsistent with the Motor Vehicle Aggregator Guidelines, 2025.Passengers can still choose to tip drivers, but the option should be presented only after the journey. Aggregators have been directed to pass the full tip amount to drivers without deductions.Platforms have also been warned against creating an impression, directly or indirectly, that tipping could secure faster confirmation, reduced waiting time or better service. The direction is also subject to the Consumer Protection Act, 2019, and follows concerns raised by the Central Consumer Protection Authority over tipping practices on ride hailing platforms.