This Bengaluru cab service welcomes ban on autorickshaws by cab aggregators

MyN management also wrote to the state government and thanked it for launching an inquiry into the alleged overcharging.

The Karnataka government has barred app-based cab aggregators from offering auto rickshaw services after allegations drivers were overcharging customers by crossing the state's fare cap. One city-based app aggregator - MYn - welcomed the move and called the other services 'exploitative' and 'unfair'. MYn management also wrote to the state government and thanked it for launching an inquiry into the alleged overcharging.

On Thursday the Karnataka transport department issued an order that said regulations had been violated by aggregators offering auto rickshaw services on their apps. (Arun Sharma/HT File Photo)

The letter read, “Your initiative to act against exorbitant surges in Bengaluru resonates largely with our brand ethos. When we launched our cab service in Bengaluru, our principles were strictly two-fold: no commissions from drivers and no surge from users. We have always been compliant with the government-mandated rates per kilometer, and our prices do not fluctuate based on demand, weather, or any situation whatsoever."

The aggregator also called other services 'illegal and corrupt'. “We strongly believe that surges are exploitative, unfair, and defeats the very purpose of providing a convenient and feasible mode of mobility. When the government-fixed rate for 2 kilometres is Rs. 30, but the apps charge up to Rs. 100, we are only reassured how illegal and corrupt a game the duopoly is playing with its commuters. The dissent is only rising, with the drivers becoming the collateral damage in this war of surge."

The other aggregators have yet to respond, either to the government's ban or MyN's letter.

On Thursday the Karnataka transport department issued an order that said regulations had been violated by aggregators offering auto rickshaw services on their apps. "... We also received complaints about not following the price cap that was fixed by the government. We were informed that the higher charges are being collected from the passengers. Therefore, the auto services must be discontinued and aggregators must submit a report to the government on overprice allegations," the order said.

In November the government raised fares charged by auto drivers from Rs. 30 from ₹25 for the first two kilometres. The base price per every kilometer thereafter increased to ₹15 rupees from ₹13.