Source- Live Law
The online transportation network companies Ola and Uber have received a notice from the Karnataka transport department regarding the issue of earning money on the basis of time-based fare. The government made the rule that the cabs will charge money on the basis of distance travelled per kilometre but cabs have been found to be charging money based on time of the day. The department stated that according to rule 11(a), the licensing authority can suspend or even cancel the licence of a driver if he does not follow the rules. While Ola acknowledged the receipt of a notice and said it will soon reply to it, there is no response from the Uber Company till the filing of this report. Critics are of the view that charging prices only on the basis of distance can have a major impact on a company’s profitability as well as on the earning of the drivers.
Source: Economic Times