Ola Back On The Road As Karnataka Lifts Suspension

Ola Back On The Road As Karnataka Lifts Suspension


Ola would run its business as usual, a top state govt exec said

On March 22, the Regional Transport Office suspended Ola's license

Users had reported no problem booking Ola cabs on Saturday

A Karnataka-wide ban on Ola parent company ANI Technologies was lifted on Saturday night (March 23), after just over a day into the suspension.

Karnataka’s minister for Social Welfare, Priyank Kharge, took to Twitter to announce that the ban on the home-grown ride-hailing unicorn, has been lifted. Kharge also said that the government needs to update its policies to accommodate new innovations.

Ola was stopped from running cab operations in the state of Karnataka for allegedly violating the license conditions for running bike taxis and also violating government rules. On March 22, the Regional Transport Office suspended the license given to Ani Technologies and said that the company will not be able to run its aggregator service for any vehicles including cars, autos and bikes for the next six months.

The suspension order was issued to bike-taxi sharing Rapido as well.

Ola is yet to to issue an official confirmation regarding lifting of the ban till the time of publication of this report.

While the suspension came into effect on Friday, Ola users in Bengaluru told Inc42 that they were able to book cabs on Saturday and there was no disruption in services.

The ban followed a long-running point of contention between Ola and the Karnataka’s transport department over bike taxis. In February, 2019 the transport department had written to Ola and Rapido to stop their bike taxi services immediately.

Ola sent its reply on March 3, 2019. As the company’s reply was not satisfactory and did not provide any evidence which proved it did not violate norms, the Transport Department, as on March 18, 2019, has decided to suspend the license of Ola for a period of six months.

The notice has been issued due to violation of Section 11 (1) the Karnataka On Demand Transportation Technology Aggregators Rules 2016, owing which the Transport Department can decide to cancel the license of the cab aggregator as there is a violation of rules. Ola has a licence to operate taxis in the state from June 2016 to June 19, 2021.

In February Ola’s bikes were also seized after the secretary of the state transport authority, Narendra Holkar had reportedly directed officials to seize any such bikes if found and also penalise them.

Update: March 25 | 1:10 PM

On Monday, the ban on Ola was lifted by State Transport Department in lieu of INR 15 Lakh fine. The company spokesperson said, “We are glad that the issue stands resolved and we regret any inconvenience caused to our driver-partners and passengers since Friday. e look forward to continue working with the State, to help address the challenges of mobility. We are committed to creating and enhancing livelihood opportunities for millions of driver-partners in the time to come.”

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

Unlock 60% OFF
Cancel Anytime
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Ola Back On The Road As Karnataka Lifts Suspension-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Ola Back On The Road As Karnataka Lifts Suspension-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Ola Back On The Road As Karnataka Lifts Suspension-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Ola Back On The Road As Karnataka Lifts Suspension-Inc42 Media
Ola Back On The Road As Karnataka Lifts Suspension-Inc42 Media
You’re in Good company