Ola, Uber licence trouble: What we know so far

Ola, Uber and Rapido have been asked to stop their services within three days and cases will be registered against the cab aggregators if they violate the order

The Karnataka government has directed the app-based cab aggregators, Ola, Uber and Rapido to stop their ‘illegal’ autorickshaw hailing services in Bengaluru with immediate effect, citing violation of norms. The action comes after many passengers complained of be over-charged by the autorickshaws operating under apps like Ola and Uber.

Here’s what we know about the ban so far:

On Thursday, The Karnataka State Road Transport Authority issued a notice to the companies, in which it stated that the cab aggregators have only been allowed to run the internet-based application taxi aggregator services under the Karnataka On-Demand Transportation Technology Aggregators Rule-2016.

Speaking to Mint, L Hemanth Kumar, additional commissioner for transport and secretary, State Transport Authority said, “They are not supposed to run autorickshaws with a cab-aggregator licence. Aggregator rules are only for cabs. We’ve asked them to stop autorickshaw services through the app and submit a report."

As per the rules, only taxi services can be provided, and taxi means a motor-cab having a seating capacity not exceeding six passengers excluding the driver with public service permit on contract.

Also Read | Karnataka Ola, Uber auto services 'illegal', Rapido may face action for overpricing

Moreover, licences issued to cab aggregators Ola and Uber expired last year, transport officials said on Friday. Officials in the transport commissioner’s office said Ola’s licence to aggregate cabs expired in June 2021 while Uber’s expired in December 2021.

The notice also accused the mobility players of overcharging the consumers by seeking higher rates that those fixed by the government.

Ola, Uber and Rapido have been asked to stop their services within three days and cases will be registered against the cab aggregators if they happen to violate the order.

Ola and Uber India declined to comment. Uber in recent weeks has been running television ads on its auto rickshaw service in India. Rapido said its operations in Bengaluru are not illegal and it will respond to the notice.

Reacting to the notice, In a conversation with The Indian Express, M Manjunathan, president of Adarsha Auto and Taxi Driver’s Union in Bangalore and Mysore accused the government and cab companies of not paying heed to their demands.

Addressing a press conference on the issue, when asked about the services being active despite the suspension, Transport Minister B Sriramulu said, “I have dispatched my officer. I have ordered them to seize Ola and Uber vehicles.”

(With agency inputs)