UberCommute in Bengaluru violates law, says Karnataka

Uber had launched UberCommute in Bengaluru, which lets drivers of private cars share ride with fellow commuters for a fee

Karnataka has accused Silicon Valley taxi-hailing app Uber of violating transport department rules with its private car-pooling service, UberCommute, because it allows unregulated use of private vehicles to ferry passengers for prescribed fares and compete with taxis.

On January 4, Uber announced the launch of UberCommute here. It lets drivers of private cars share their ride with fellow commuters headed in the same direction for a fee. The commuters would know the fare in advance on the Uber app, transact on the app and the money would be paid to the driver every week.

“They know it is not permitted. It will compete with commercial taxis,” said Ramegowda, Karnataka’s commissioner for transport and road safety. “If we find violators, we will punish them under the law.”

The Motor Vehicles Act mandates taxis to pay annual taxes and permit charges to ferry passengers. Drivers need to possess a badge to ferry passengers, in addition to the driving licence, and the cars are also subject to annual inspection for their fitness. Private car owners pay a one-time tax for life when the car is bought.

Uber has said on its website that carpooling helps owners recover the running cost of the car, calculated at Rs 35 as a base rate, with Rs 7 per additional km.

Uber had its India rival, Ola, pilot its UberCommute service in Delhi, where the city government recently introduced restrictions on plying to reduce congestion on the roads and pollution in the air. Ola does not specify the money to be paid for the service to drivers.

With around 1,600 new cars hitting the streets of Bengaluru every day, the traffic congestion in the city has surged, a problem the government and the Bengaluru traffic police are working hard to resolve.

UberCommute will help tackle congestion and pollution by getting more people in fewer cars, Uber said in a statement on Monday.

“It will help tackle congestion by getting more people in fewer cars. It is similar to carpooling initiatives run by other players in Bengaluru,” an Uber spokesperson said in an e-mail response.

It did not comment on the Karnataka government charges.

According to T V Mohandas Pai, co-founder of Aarin Capital and a prominent Bengaluru citizen, as long as private cars are not used for business, car pooling and sharing cost is legitimate.

“It is good because it helps de-congest roads and the costs can be shared. It is a legitimate way of dealing with the congestion issue.”  

Karnataka has already indicated it will join Maharashtra to regulate taxi aggregators such as Ola and Uber, mandating them to restrict number of vehicles on the platform.