Ola, Uber oppose five per cent cap on service charge

On Monday, the counsels of the cab aggregators and the advocate general made their submission before Justice CM Poonacha, who was hearing the petitions questioning the impugned notification.
Image used for representational purpose only. (Photo | PTI)
Image used for representational purpose only. (Photo | PTI)

BENGALURU: Cab aggregators Ola and Uber have strongly opposed the state government’s notification directing the transport department to restrict them to collect service charges up to 5 per cent only for autorickshaws plying through them.

On Monday, the counsels of the cab aggregators and the advocate general made their submission before Justice CM Poonacha, who was hearing the petitions questioning the impugned notification.

The petitioners contended that the state authorities do not have the power under the Motor Vehicles Act to regulate or fix the ‘service fee’ charged by aggregators. The ‘service fee’ does not come under the ambit of fare and cannot be regulated under Section 67 of the Act. The service provided by the cab aggregators is not in the nature of transportation services and is not directly connected with the ‘hire’ of motor vehicles, the petitioners claimed.

“The business activities of the petitioners are protected under article 19(1)(g) (right to practice any profession). This necessarily involves an element of earning monies to sustain one’s livelihood and for profit. Therefore, the restrictions placed by the state authorities in earning monies to sustain its business are in violation of Article 19(1)(g) and hence the impugned notification was issued without application of mind,” the petitioners claimed.

On the other hand, the state government defended its action by justifying the notification dated November 25, 2022, imposing restrictions on the service fee. A further hearing will continue on Tuesday.

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