Karnataka High Court Upholds Service Charge Cap on Ola and Uber
The Karnataka High Court recently dismissed the petitions filed by cab aggregators Ola and Uber challenging the transport department’s notification capping their service charge. Justice Suraj Govindaraj upheld the notification allowing aggregators to collect a 5% service charge above the fixed fare.
The court’s decision comes after the state government permitted a 5% increase over the base fare set in November 2021. The petitioners argued that as intermediaries, they are not permit holders or owners and should not be subject to service charge regulation.
However, the state government asserted its authority to regulate service charges for public interest, comparing the aggregators’ services to contract carriage services. The court’s order copy is pending release.
Despite the ongoing debate, the Karnataka High Court’s ruling stands, affirming the transport department’s power to regulate service charges for platforms like Ola and Uber.
Published on 27 May 2024, 22:17 IST