The Karnataka High Court has directed the State Transport Department to decide on the representation of one Syed Jaffer Mohiyuddin accusing the ride-hailing app, ‘Namma Yatri’ of “unethical pricing”.
Mohiyuddin, a resident of Bengaluru, filed a writ petition against Juspay Technologies Pvt Ltd which owns and operates Namma Yatri, an ONDC-registered platform, and demanded compliance with state-notified fares and GST rules.
The complainant, in his plea, accused Juspay Technologies Pvt Ltd of burdening commuters by collecting a very high fare.
“Considering the limited grievance raised in the writ petition, we deem it appropriate to dispose of the writ petition with a direction to respondent No.4 to decide the representation dated 10.07.2023 filed by the petitioner as expeditiously as possible, but not later than eight weeks from the date of receipt of a copy of this order,” read an order passed by a bench headed by Chief Justice.
The plea filed by Jaffer alleged that Juspay Technologies is committing a violation of certain rules under the Motor Vehicles Act, 1988 and of the notification dated 06.11.2021 by collecting very high fares due to which, the common aggregators and commuters are subject to unethical practice by the said aggregator.
Namma Yatri, a popular ride-hailing app in Karnataka’s Bengaluru, has been embroiled in a spate of controversies of late.
The complainant has accused the ride-hailing app of violating the notification dated November 6, 2021, and notification dated November 25, 2022, by collecting a very high fare and burdening commuters.
This resident is just one among the numerous commuters who have been impacted by Namma Yatri’s unregulated pricing. Although the app claims to be implementing government-fixed fares, the reality is different with a bouquet of other charges adding to the base fare.
Namma Yatri charges Rs 10 over and above the fare towards pickup charges. Besides, the app doesn’t show a fixed cost but offers a range within which the driver can negotiate with a customer.
For instance, if the app shows Rs 40-70 for a 2-km ride, drivers insist on paying Rs 70 and they end up winning the bargain most times. To make things worse, the app allows a pre-tipping system for drivers to accept the rides, and customers will additionally have to tip off Rs 10 to Rs 30 towards this.
This not-so-professional pricing pattern makes Namma Yatri no different from the street-hailing autos and overrides the very purpose of capping the fares.
Subscription Fee
Namma Yatri promoted itself as a zero-commission platform and the entire fare would go to drivers. However, it has now taken a U-Turn. Starting September 1, the drivers will have to pay a subscription fee of Rs 25 for unlimited trips per day, or Rs 3.50 per ride (no charges after 10 trips).
While the initial allure of zero commissions may have attracted drivers, the subsequent discussions of implementing a subscription model have raised doubts among drivers about the long-term affordability of the service.
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