Uber and Ola fares in Karnataka and Maharashtra

Ride-hailing services companies Uber Technologies Inc. and Ola (ANI Technologies Pvt. Ltd) may have to raise fares in Karnataka and Maharashtra, potentially capping growth, as the states consider imposing new restrictive regulations.

Both Karnataka and Maharashtra have set up committees to look into fares charged by ride-hailing services. The committees will not only look into the upper ceiling—the most these companies can charge—but also mandate minimum fare per kilometre.

The move comes in the wake of complaints and protests by drivers affiliated to their platforms over a drop in incentives and by traditional taxi operators, who have accused the venture capital-backed companies of undercutting fares, which has adversely impacted their businesses.

(Source: http://www.livemint.com)