Hindustan Times (Chandigarh)

Karnataka sends Ola off the roads for six months

- Sharan Poovanna and Varsha Bansal

BENGALURU: The Karnataka government has suspended the licence of Ola Cabs (ANI Technologi­es Pvt. Ltd) for six months with immediate effect, alleging that the ride-hailing company had been running two- wheeler taxis in violation of the law.

“There is a violation of rules as bike taxis are not part of the licence issued to them (Ola),” said an official at the state transport department, requesting not to be named. The notice to cease operations comes against the backdrop of new-age technology companies in Bengaluru protesting against what they say are archaic government rules.

The state transport authority took up the matter after receiving complaints and a subsequent report by the regional transport authoritie­s, the official said.

“Under the licence, only appbased taxi services were permitted and there was no permission for bike taxis,” the transport department said in its notice to Ola on 18 March.

Ola and Uber were issued licences in 2016 under the Karnataka On-demand Transporta­tion Technology Aggregator­s Rules 2016, which were formulated after prolonged legal battles. Both Ola and Uber had run into trouble with the transport department when they began offering two-wheeler taxi services in 2016. The state government proposed to formulate rules facilitati­ng bike taxis in Bengaluru, but there was little progress despite the interest shown by the industry. Uber was also forced to shut its twowheeler taxi offering in 2016 after the department started to seize its vehicles.

“We have been closely working with the authoritie­s on this topic, responding to queries and making proactive representa­tions to the ministry. Despite other companies continuing to operate illegally, Ola halted its bike-taxi experiment weeks ago, instead seeking the state’s cooperatio­n to develop a legal framework for a pilot that will continue to take advantage of emerging opportunit­ies in the mobility economy,” Ola said on Friday. “This notificati­on is unfortunat­e and we look forward to an opportunit­y to address these concerns directly with state officials to find a solution for our driver-partners and millions of Ola users in Karnataka,” the company said.

Newspapers in English

Newspapers from India