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Karnataka Govt. Comes To Ola And Uber’s Rescue – Provides 15 Day Extension On Ban

Karnataka Govt. Comes To Ola And Uber’s Rescue – Provides 15 Day Extension On Ban

The Karnataka government has come to the rescue of cab aggregators Ola and Uber against the  Karnataka Transport Department’s order. Earlier this week, UberPOOL and Ola Share services were deemed illegal in the state.

Now the Karnataka government has given the companies a 15-day extension to comply with rules regarding ride-sharing services. Uber and Ola had introduced ride-sharing services by the names of ‘UberPOOL’ and ‘Ola Share’, respectively, in order to facilitate rides at lower rates and improve traffic condition, as well.

Last week, Karnataka’s Transport Commissioner M K Aiyappa declared the cab-sharing services of online cab aggregators as ‘illegal.’ The ban was imposed stating that the cab sharing services violate the Motor Vehicles Act as mandated by the Karnataka Government. As per guidelines, the cabs cannot pick and drop passengers at multiple locations before ending the trip.

During this 15-day-period the online cab aggregators are expected to modify their software in order to withdraw UBERPOOL and Ola Share options. Also, the cab aggregators are allowed to continue their cab-sharing services and also at liberty to appeal against the ban on ride-sharing services. Uber has already started an online petition in the state, urging users and citizens of the state to support UberPOOL.

Transport commissioner MK Aiyappa said, “We will stop enforcement for the next 15 days.During this period, the aggregators have agreed to make the necessary changes in their mobile apps. They can also seek to amend the Karnataka Motor Vehicle Rule.“

The transport department seized around 30 cabs with ride-sharing services. However, Joint Commissioner (enforcement) J Jnanendra Kumar said that the enforcement was stopped after both the cab aggregators met transport minister Ramalinga Reddy, seeking an extension of the deadline.

[This development was reported by ET.] 

Author

Aparna Mishra

Inc42 Staff

After a 2-year-stint at Ernst & Young, Aparna moved to Journalism. Her prior experience enables her to understand business management. An avid reader and a traveller she hopes to gain insights on the startup ecosystem at Inc42.

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