Uber installs meters in cabs to comply with Karnataka rules

The taxi hailing app is miffed with local transport authorities' refusal to accept its application

Uber, the taxi hailing service, has installed meters in about 100 cabs here, its second largest market in India, in its try for a licence under the new rules for taxi aggregators in the state.

The move to install these digital meters is in stark contrast to its model of delivering the service exclusively via mobile telephone apps.

CAP ON FARES

• Uber outfitted 100 cabs with digital meters & taxi boards
• RTO did not accept Uber’s application for license despite being compliant
• Ola’s application before Uber was accepted
• Govt wants Uber and Ola to agree to a price cap set by it
• Uber filed a petition on June 1 in the Karnataka HC to quash the new rules

The state government had mandated under its recent On-Demand Transportation Technology Aggregator Rules that entities such as Uber or Ola follow a cap on fares fixed by the state, end surge pricing, install digital meters, fix taxi boards atop cabs and maintain a physical ledger in each vehicle on their platforms. Uber has gone to court over the rules. These mandated that a minimum of 100 cabs be compliant for taxi aggregators to apply for a licence to operate. The second hearing for the case is scheduled to take place in court on June 20, before which the company was hoping to complete the application process.

However, despite meeting the minimum requirements and giving all supporting documents, Uber says its application was not accepted. So, it has sent it via Speed Post to the state commissioner of transport, Ramegowda.

“Today, our representatives approached your offices to submit the complete set of documents, is fully compliant with the Karnataka On-Demand Transportation Technology Aggregator Rules, for the purpose of acquiring a licence. However, your offices refused to accept our documents or even acknowledge our document submission,” wrote the company in a letter dated June 7, addressed to him. Uber, which plans to invest a part of the $3.5 billion it raised from Saudi Arabia in its India unit, says it's keen to be regulated in the country, as long as the rules set by states are fair. Despite agreeing to the state government’s demands, a move which could hurt it in its case to quash the new rules, it sees itself facing a wall. Ola, the company’s homegrown rival, gave its application for a licence to operate in Karnataka before Uber.

Its application at the regional transport office (RTO) was clubbed with that of its TaxiForSure, the local rival it acquired to take on Uber -- this was processed for two separate licences. A senior RTO officer said this was a mistake; both Ola and TaxiForSure had 100 cars each complying with the new rules. An Ola spokesperson declined to comment.