It is worth mentioning that in February, the auto and cab drivers union of Chennai, Urimaikural Ottunar Thozhirsangam (Urimaikural drivers trade union), declared an indefinite boycott of Ola and Uber due to high commissions on daily rides.
In response, the platforms recently adopted zero-commission models.
In March of this year, the Centre announced the launch of a new state-backed ride-hailing service called ‘Sahkar Taxi’, aimed at competing with the existing market leaders in the ride-hailing space. With this platform, drivers would have complete control over their earnings, without any commission deductions by third-party services.
It is important to highlight that the Karnataka High Court ruled in April that bike taxi service providers such as Ola, Uber, and Rapido had six weeks to stop their services. Subsequently, Ramalinga Reddy, the transport minister of Karnataka, instructed officials from his department to implement the High Court’s directive to suspend bike taxi services in the state.
A division bench of the Karnataka HC, in a recent development, refused to suspend the order until the state government issues a comprehensive policy for regulating the services, earlier this week.