Sriramulu’s statement came after the aggregators continued to operate their app-based auto-ride hailing services, despite a government notice ordering them to stop and seeking an explanation as to why they had been charging more than the stipulated government rates.
The minister, in a response to local TV channels in Gadag district, made clear that the government would not tolerate illegal operations by app-based firms.
Sriramulu said he had asked officials to take stern action against ride-hailing services if they operate without a valid licence.
On Wednesday, ET was able to hail rides across Ola, Uber and Rapido and drivers said they would continue to accept rides as it was difficult for them to find customers otherwise.
ET reported on October 8 that aggregators were unlikely to stop services in the city despite the cease orders.
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“People are now used to hailing autos through the app,” said an auto driver.
By evening, all three aggregators had reduced the convenience fee from Rs 47 after tax to around Rs 25 after tax.
A source aware of the matter said the fee would remain fixed and would not be affected by the distance covered.
Rides for one kilometre, which were earlier Rs 78 on Ola, had come down to Rs 65 as of Wednesday evening.
Ride-hailing companies were also showing the fare breakup more prominently on their apps.
“We stand ready to work with the government to ensure that the benefits of e-hailing extend to the auto industry and particularly to the tens of thousands of drivers and several lakh riders who rely on aggregator apps such as ours,” Uber said in a statement. “The people of Bengaluru have made it clear that they value door-step pick-ups, no haggling and around-the-clock support that platforms like Uber bring to serve the mobility needs of the city.”
Ola and Rapido did not respond to ET’s queries till press time Wednesday.
ET reported on October 11 that the government had held a meeting with Ola and Uber after they responded to the government notice.
The authorities have suggested that ride-hailing firms were free to make an application to the transport department requesting a licence to offer auto-rickshaw rides as well on their apps since it requires amendments to the existing policy, which only allows cars to be aggregated.
