 "Karnataka HC ends surge pricing for Uber; here are the other rules it has to follow")
Uber and Ola faced a major setback on Thursday when the Karnataka High Court upheld the ban on surge pricing by taxi aggregators, and other rules framed by the state government to regulate fares by these platforms. (Read more)
The ruling comes days after several states, including Maharashtra, Delhi and West Bengal framed similar rules to regulate these aggregators.
Karnataka's capital Bengaluru is one of the largest markets for both Uber and Ola.
Prior to the new regulations, Uber and Ola had to suspend their bike taxi services after the Karnataka government said the transport rules did not have provision for two-wheelers to be used as taxis.
In June, Uber had filed a petition seeking quashing of new rules by the state government and had questioned the legality of Karnataka to frame the rules, calling it "anti-constitutional". Ola, for its part, had secured a license. Further, Ola and the Radio Taxi Operators Association have supported the move.
What rules had the state government set down?
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Get a license
In May this year, Karnataka had directed taxi aggregators such as Uber and Ola to stop operations in the state until they had secures a licence from the government. (Read more)
End surge pricing
However, getting a licence would mean no more surge pricing and complying with the maximum fares fixed by the government periodically. Further, it would mean registering with local transport authorities. According to the Financial Express (FE), the court said that fares cannot exceed beyond the cap of Rs 19.50 per km.
Minimum fleet of 100 cars
The rules also mandate that such operators would have to maintain a minimum fleet of 100 cars. The operators would have to ensure that printed receipts were generated for every ride, and that all cars would need to have a panic button and carry the "taxi" signage.
Requirements on drivers
According to the FE report, another regulation is that the drivers should have been residents of Karnataka for at least two years and possess working knowledge of the Kannada language.