Karnataka CM directs committee to resolve stand-off between Ola-Uber and drivers

The wrangling between cab-hailing companies such as Ola and Uber and their partner drivers is continuing in Bengaluru, as the drivers have long been demanding a raise in earnings and incentives.

The state government, acting as mediator, has now directed the Transport Department to form a committee to resolve the differences between the two. New Karnataka Chief Minister HD Kumaraswamy is overseeing the entire matter.

The department is expected to form the committee in two days and submit a report to the chief minister after discussing with all stakeholders.

Besides, other state taxi associations are also protesting against the price monopoly of cab-hailing giants and want the implementation of a single pricing system for all the cabs across the state. The competition should be based on services and not fare.

Last week, the transport department issued notices to cab aggregators Ola and Uber for charging time-based fare in violation of rules, which came into effect in January and prohibited cab companies from charging on the basis of time.

Amidst the stand-off, Uber has ensured to get engaged with the government and relevant authorities to resolve the issue.

In an e-mail reply to Entrackr, Ola said, "We adhere to the rules of the Karnataka Transport Department and operate with the aim of strengthening transportation services and offerings for everyone.

This is not the first time when Bengaluru has witnessed such impasse between cab aggregators and drivers.

Last year, drivers had hit the streets to protest in the wake of falling incentives offered by Ola and Uber. Kumaraswamy, the then opposition leader, had publicly extended support to drivers.

In November, Kumaraswamy launched Namma TYGR, an app-based cab service with a fleet of 10,000 cabs in Bengaluru. Namma TYGR is launched in collaboration with Kolkata-based startup TYGR.

The launch of Namma TYGR was an extension of an effort in the form HDK cabs launched in July last year.

The development was first reported by ET.