No mobile app-based auto services till aggregators receive licences, says Transport Commissioner

They will have to stop plying from today, says official

Ola and Uber have agreed to stop auto services with effect from Wednesday and apply for licences to aggregate autos on their mobile app platform during a meeting with the government, Transport Commissioner T.H.M. Kumar has said.

“Ola, Uber and Rapido representatives took part in the meeting. Ola and Uber have agreed to apply for licences. We are hoping that Rapido will also come forward to apply. Until they receive a licence, auto services cannot be provided on their platforms. During the meeting, we told the representatives that existing taxi aggregators rules do not permit mobile app-based auto services,” said the commissioner.

The official said that once the taxi aggregators submit the application seeking licence, a proposal will be sent to the State government for formation of rules to allow autos services on aggregators’ rules. “ At the State level, the taxi aggregators’ rules need to be modified. Fares rules will be decided at the State government level,” said the commissioner.

The official maintained that if the aggregators continue to violate the rules, the cyber police will be approached to disable the feature of providing auto services on their mobile. The official said that a penalty of over ₹5,000 per vehicle can be imposed if the aggregators violate rules. “We will not penalize any auto drivers, instead the taxi aggregators will be held responsible,” he said.

When asked why the department failed to take action against the taxi aggregators for running “illegal business” all these years, the commissioner cited a case is pending before the High Court. “As per the order of the court, no coercive action could be initiated against the aggregators,” the commissioner said.

The department had issued notices to aggregators on October 6 asking them to immediately stop auto services and reply to the notices in three days. Aggregators were accused of charging exorbitant fares for providing auto services. Following the written responses from them, a meeting was convened on Tuesday.