'Each auto ride creates 5% convenience fee...': Ola, Uber drivers worried over Karnataka government's new rule

The Karnataka government on Friday directed regional transport authorities to collect 5% convenience fee plus GST from ride-hailing companies on every autorickshaw ride by passengers.

OUDOA also accused the state government of not properly presenting its case before the court.

The new rule of 5% convenience fee and GST on every ride has not gone down well with the Ola Uber Drivers and Owners Association (OUDOA) and autorickshaw drivers associated with ride-hailing companies.

The Karnataka government on Friday directed regional transport authorities to collect 5% convenience fee plus GST from ride-hailing companies on every autorickshaw ride by passengers. OUDOA also accused the state government of not properly presenting its case before the court.

"The government should have brought an amendment to the Karnataka On-Demand Transportation Technology Aggregators Rules as there is no provision for autorickshaws," OUDOA president Tanveer Pasha told PTI.

"Had they (transport department) given proper information to the court, the court would have directed the government to amend the rule," he said.

He also alleged that the government did not consult the Regional Transport Authority and the Bengaluru Urban District while passing the new rule.

Currently, the fee for an autorickshaw is ₹15. for every kilometer. The 5% convenience fee with GST per kilometer ride in Bengaluru would cost around 80 paise and Pasha was apprehensive that aggregators might find ways to increase this.

The minimum charge set by the government for an autorickshaw ride is ₹30 and above that the fare is ₹15 per kilometer. Thimmappa, an autorickshaw driver, said that this fixed fare does not seem very high, but it is difficult to estimate how these companies will charge people.

Thimmappa said, "These Ola-Uber companies were charging exorbitant fees, due to which the government had to intervene. We do not know how they will use this latest order to burn a hole in the pocket." Venkatesh N, another autorickshaw driver, said only time will tell how the rates will be fixed on each ride and how people will be charged. A member of the public relations team of Ola Cabs declined to comment on the five per cent convenience fee.