Tech

Uber, Ola, Rapido direct to stop tricycle service in Bengaluru because of ‘exorbitant’ prices


A top Indian government official has ordered taxi aggregators Uber, SoftBank-backed Ola and Rapido to stop tricycle services in Bengaluru, a top government official said, alleging they overcharge and harass customers.

“They’re not allowed to stack cars… They’re charging exorbitant fees and that’s a serious complaint,” Hemantha Kumara, Bengaluru’s traffic commissioner, told Reuters.

“We cannot tolerate harassment that happens to customers and justify exorbitant prices,” he said.

Ola and Uber India declined to comment. In recent weeks, Uber has been running TV ads on its auto rickshaw service in India.

The country is a burgeoning market for ride-hailing companies as people seek to avoid driving on congested roads and automated rickshaws, or tuk-tuks, are among the methods. Shortest travel is the most economical.

Rapido said their activities in Bengaluru are not illegal and they will respond to the notice.

“All of our fares are determined by fares determined by the state government, and Rapido does not charge any extra for those fares,” the company said in a statement.

Last month, India’s competition regulator said that excessive price increases applied by taxi aggregators in the country appeared to be a ‘Black Box’ for customers and called for transparency. .

© Thomson Reuters 2022


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