Karnataka Transport Authority To Hear Ola, Uber Licence Renewal Issue On December 6

The Karnataka State Transport Authority will hear the applications of ride-hailing service providers Uber and Ola for renewal of their operating licences in Bengaluru on December 6.

Besides Ola and Uber, Rapido has also applied for a licence to operate auto rickshaws in the city. However, the transport authority will take it up only after the initial inspection procedures are complete, ET reported.

Back in June and December 2021, the licences of ANI Technologies (Ola) and Uber Technologies Inc. for Bengaluru had already expired, respectively.

But the cab aggregator services were able to operate due a court order that restrained authorities from taking ‘any coercive action’ after the companies argued that they are not transport operators, rather provide the technology platform only.

The licences were issued in 2016 under the Demand Transportation Technology Aggregator Rules, for a five-year period. As per the rule, the licenese holders have to apply for renewal 60 days before the expiry of the permit.

“We will hear the applicants and seek clarifications, if any, before considering their applications for further processes,” L Hemanth Kumar, secretary of State Transport Authority, said, as quoted in the report.

Moreover, there are other requirements for the licence holders such as filing of quarterly returns, operating a control room in Bengaluru, and setting up a grievance redress cell, among others.

Recently, the state government reportedly sought to cap the convenience fee at 5% for auto rickshaw rides. This is nearly half of the prevailing interim 10% service charges, capped by high court, that cab operators are currently allowed to charge customers.

The Karnataka Transport Department last month issued an order to cab aggregators – Uber, Ola and Rapido, directing them to stop auto rickshaw services in the state for overcharging customers.

Both Uber and Ola dragged the state government to Court over the matter. The aftermath saw the HC allowing the aggregators to resume services and directed the Karnataka government to hold talks with Uber and Ola over auto fares.

Considerably, Ola and Uber dominate the online cab aggregator space in India. As per a report, the Indian online taxi services market was pegged at INR 2,975 Cr in FY19, and is estimated to reach INR 6,159 Cr by 2024.