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Cab aggregators will need separate license to run three-wheeler on road

by Rishika Choudhury

Date & Time: Oct 14, 2022 8:00 AM

Read Time: 1 minute

The Karnataka Transport and Road Safety Department directed cab aggregators Ola, Uber, and Rapido to apply for a separate licence to run and operate three-wheeler autos on their respective platforms.

"We discussed with the companies (Ola and Uber) with regards to pricing and license. After reviewing we have directed the companies to apply for an auto aggregator 
license within the next one day, " Said T.H.M. Kumar, commissioner of Karnataka Road Transportation and Safety.

Fine will be charged if rules are not followed

The commissioner clarified that companies are asked to stop providing auto services starting Wednesday, and if the autos continue to run or passengers are allowed to book them, the company will be fined Rs 5,000 per vehicle, per day for the first offence.

Commissioner Kumar stated that neither the passengers nor the auto drivers will be held liable for the bookings.

The Transportation Department has reiterated its position that aggregator-run three-wheeler autos are illegal and cannot operate under the cab aggregation licence.

"The companies should apply the license to the Transport Department immediately, we will process it and send it to the Central Government till then no autos should run through the aggregator platforms, " The commissioner said.


According to the aggregators' pricing response, the companies will charge a base fare of Rs 30 for the first two kilometres and Rs 15 per kilometre for the ride, in accordance with government regulations. In addition, a Rs 40 convenience fee and a 5% GST are levied on each ride.

The commissioner, however, stated that a separate meeting will be held to discuss the computation and limit of charging a convenience fee.

“As per the provisions under On-Demand Transportation Technology Act 2016 aggregators are given license to provide taxi services only, taxi means a motor cab having a seating capacity not exceeding 6 passengers excluding the driver with public service permit on contract", said the transport commissioner THM Kumar in a notice.

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