Home / News / India /  '5% convenience fee on each auto ride makes...': Ola, Uber drivers fret over Karnataka govt's new rule

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

This comes after the Karnataka government on Friday directed the regional transport authorities to charge 5% convenience fee and GST from the ride-hailing companies on each autorickshaw ride by the passengers. The OUDOA also blamed the state government for not presenting their case properly before the Court.

OUDOA president Tanveer Pasha told PTI, “The government should have brought an amendment to the Karnataka On-Demand Transportation Technology Aggregators' Rules because there is no provision for autorickshaw in it."

"If they (transport department) had given proper information to the court, then the court would have directed the government to bring an amendment to the rule," he said.

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

Currently, an autorickshaw charges 15. for every kilometre. A 5% convenience fee with GST on per kilometre ride in Bengaluru would cost about 80 paise and Pasha was apprehensive that the aggregators may find ways to increase it.

The minimum charge fixed by the government for autorickshaw rides is 30 and the per kilometre fare above that is 15. Thimmappa, an autorickshaw driver, said the fixed fares on the face of it do not appear to be exorbitant but it is difficult to predict how these companies would charge people. 

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

(With inputs from PTI)

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