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Ola Brings Surge Back In Karnataka, Transport Department Issues Notice

Ola Brings Surge Back In Karnataka, Transport Department Issues Notice

Cab aggregator Ola has been issued a notice by the Karnataka Transport Department for flouting the rules after obtaining the license.

Interestingly two-weeks back, Ola was seen defending the Karnataka’s new regulations governing tech-based cab hailing services. On June 30th 2016, Ola filed a lengthy affidavit to the High Court, looking into the legal validity of the April 2 regulations notified by the government. In the affidavit Ola gloated that it is the only cab aggregator to have been issued a license under the new regulations because it has satisfied all conditions.

Inc42 has a copy on the notice dated July 4th 2016. In the notice the Karnataka Transport Department has asked Ola to explain why its licence for running its services should not be cancelled on grounds of violating the licence conditions.

The aggregator had got the licence on June 19th under Karnataka’s new regulations for technology based taxi aggregators notified on April 2.

The notice mentions-

  • Ola has introduced surge pricing during peak hours, which is above the price fixed by the government and hence in violation of the new rules for license
  • Ola has also brought back Shuttle services with maxi cabs of 12+1 seating capacity, in Bangalore, which again is in violation to the new rules

As per the new regulations only the Bengaluru Metropolitan Transport Corporation (BMTC) can ferry intra-city commuters. The notice had given the cab aggregator a week’s time to send in its reply.

On the other hand Uber’s application for license is still pending. It had also filed a petition challenging the Karnataka On-demand Transportation Technology Rules, 2016. The hearing was due for tomorrow. However, after Karnataka High Court, order Uber has withheld its surge pricing in the state.

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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