If Ola and Uber are to make big money, their big focus needs to be on the cab business. (Photo: Reuters)

Karnataka Issues Notice To Ola, Uber For Charging Time-Based Fare

Karnataka issued notice to app-based cab aggregators Ola and Uber Technologies for charging fare based on time rather than distance.

As per the revised tariff structure applicable since January, only fares based on kilometres notified by the government should be levied, according to the June 2 notice reviewed by BloombergQuint. The state Transport Department found that the ride-hailing companies continue to charge fare based on time.

The department issued the notice under Rule 11(a) of the Karnataka On-demand Transportation Technology Aggregators Rules, 2016, which allows the authority to suspend or cancel the licence if the licensee fails to comply. It sought an explanation and said the appropriate action will be taken against the erring parties if found violating rules.

Ola, in its reply, confirmed having received the notice. “We will shortly share the company’s response with the authority,” an Ola spokesperson said. Uber didn’t respond to an emailed query.

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