The department has given one time slot for both Uber and Ola and another for Rapido, based on their license status, to make their submissions. Rapido has been operating without a license.
L Hemanth Kumar, additional commissioner, transport department, when contacted, confirmed the development to the ET.
The decision by the Transport department to conduct a hearing follows legal advice within the government that the department hold an in-person hearing with the stakeholders before passing an order.
The hearing is as part of a proceeding the Transport department initiated last week by issuing notices to Ola, Uber and Rapido, last week, asking them to stop their auto ride-hailing services forthwith as the license issued to them under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, allows them to offer only taxi services in a motor cab having a maximum six-member passenger seating capacity, excluding the driver. The transport department’s deadline to respond to the notice will expire on Tuesday.
The three app-based ride-hailing services are battling allegations of collecting inflated fares from customers on auto-rides booked via their platform in violation of the government’s prescribed fare structure.
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Uber, Ola and Rapido did not respond to queries sent by ET as of press time.
Meanwhile, the state home minister Araga Jnanendra will hold a meeting with top police and transport officials in Bengaluru on Wednesday to discuss ways to regulate the operations of platform-based aggregators offering auto-rides.
Complaints had been pouring in from the public that their fare structure is way above the government-mandated one, he had told ET. Earlier Transport minister B Sriramulu had said authorities will start seizing autos that are found to be running on aggregator platforms despite the transport department’s direction to stop the operations forthwith, but the authorities are unlikely to escalate things till the hearing is completed. ET reported on October 8 that companies are unlikely to stop their service on the app.
The Transport department’s stand has been that the aggregators had a licence to operate motor cabs and not autorickshaws.
Following the clarification, ET reported on October 10 that the companies are likely to ask the government to come up with a new policy for aggregating the auto in the city, similar to the one brought out for bike taxis in 2021.
While companies have reduced the minimum fare of Rs 60 for four kilometers to Rs 30 for two kilometers following the notice from the government, consumers are still paying at least Rs 79 for rides due to the convenience fee charged by the aggregators which can go up to Rs 47 after taxes.
Industry executives have told ET that the convenience fee was around Rs 10-15 when the services started but has increased over time as ride-hailing companies focus on improving their margins.
