Transport dept objects to ride-hailing apps’ proposal to increase commission on auto services

The representative of Uber has submitted a proposal to the high court, requesting the latter to allow dynamic pricing and a 25 per cent commission.

Notably, the court in October had asked the stakeholders to hold meetings and decide on the commission, platform fees, and the overall fare chart for auto services offered by ride-hailing apps. (Representational/File)

A senior state government official Wednesday said the transport and road safety department has filed an objection in the Karnataka High Court against the proposal of ride-hailing apps to increase the commission for their auto services. A hearing on fare fixation was scheduled for Wednesday in the high court, but the hearing was postponed to November 21 (Monday).

The representative of Uber has submitted a proposal to the high court, requesting the latter to allow dynamic pricing and a 25 per cent commission. On the other hand, Ola has requested for doubling the base fare from Rs 30 to Rs 60 on rainy days. It has also urged for a hike in platform fees.

Meanwhile, transport officials said the department has documented meetings it held with advocates, auto driver unions, representatives of ride-hailing companies, activists, mobility experts, and the general public on the issue of fixing rates for app-based auto services. They added that the department will file an affidavit pertaining to the meetings before the high court within four weeks.

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Notably, the court in October had asked the stakeholders to hold meetings and decide on the commission, platform fees, and the overall fare chart for auto services offered by ride-hailing apps.

The Karnataka High Court in October provided interim relief to ride-hailing apps offering auto rides after the government promulgated a ban on the services. The high court in its interim order allowed the apps to charge 10 per cent extra plus GST for their auto services.

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Karnataka High Court