HC Stays A 5% Cap On Service Fees For Online Autorickshaw-Hailing

The High Court of Karnataka on Wednesday stayed the Transport Department notification, fixing a cap of 5 per cent on service charges collected by online aggregators for autorickshaw-hailing.
       
The notification issued on November 25, 2022, was challenged by the aggregators Ola and Uber. The earlier notification derecognising such service was challenged too.
       
The new notification came up after the intervention of the High Court, directing all stakeholders' views should be considered. Till then, the court allowed the aggregators to collect 10 per cent as a service fee.
      
The aggregators said they were incurring losses even if they collect 10 per cent and cited the Central government that approved a service fee of 20 per cent.
      
After issuing the stay today, Justice CM Poonacha said the court would hear out the petition along with the main petition regarding the aggregator licence for such autorickshaw-hailing.