Karnataka High Court keeps up 5% service fee for App-based Auto rides
The Karnataka High Court on Monday excused the writ petitions documented by ride hailing organizations against covering the service charge required at 5 percent in the state.
The petitions challenged the state government’s notice fixing the service charge by key raid-hailing organizations such as Uber, Ola and Rapido for auto-rickshaw rides.
As per a Bar and Bench report, the court explained that the aggregators would be qualified for collecting 5 percent service charge according to the notice.
“The writ petitions stand dismissed. It is, however, made clear that the aggregators would be entitled to collect 5% service charges as per the impugned notification now upheld over and above the fare fixed,” the court stated in its order.
In an explanation to the media, the transport minister of Karnataka, R Ramalinga Reddy said the judgment would help large number of residents of Bengaluru who depend on cars for their day to everyday drive.
In November 2022, the Karnataka department of transport had placed a cap on service charges for app-based auto rickshaw bookings at 5 percent with relevant GST on the base fare. In any case, ride hailing firms including Uber, Ola and Rapido had stand against the move.
Referring to motor vehicle aggregator rules, these organizations contended that it grants them to charge a commission of 20 percent alongside a surge cost of up to twofold the base fare. In January 2023, the Karnataka High Court remained the warning and allowed them to work briefly while charging a 10 percent convenience costs.
