Karnataka Government Gives 3 days To Ola and Uber To Stop Cab Sharing Services

By Shariq Hussain

Posted on February 1, 2017

Karnataka State Transport Department has provided a 3-day deadline to the cab aggregators, Ola and Uber to stop cab sharing services in the state. A week ago, State Transport Minister. M K Ayyappa has banned the taxi-sharing services by quoting that it’s illegal and against the state transportation rules of Karnataka.

According to the law, the cab drivers are not allowed to pick-up and drop the customers on multiple locations before ending the trip. Reportedly, the cab-aggregators, Ola and Uber have been given 3 days to remodel their application and working procedure. If the companies avoided or ignored the notice, they will be heavily charged by the officials for violating the state laws.

The cab drivers in Bangalore have started indefinite strike as a result of the companies move to acquire more cars that have led to shrinking incentives for the current drivers.The transport minister for the state, MK Aiyappa also held an hour-long meeting with the representatives of the parties, aggregators as well as drivers of Ola and Uber.

The ban should have taken place on 30^th January, but due to the protests made by the drivers, the government gave Ola and Uber 3-day deadline to stop the services.

As the ride-sharing services like ‘UberPool’ and ‘OlaShare’ have resulted in improving the environment and reducing traffic problems, the ministry is ready to make some fundamental policy changes. Mr.Ayyappa said, “If the aggregators make a representation, we will study it and recommend for appropriate policies to the government.”

When contacted to Uber’s spokesperson, they said “We would like to reiterate that ‘UberPool’ is clearly within the law. We will continue to engage with the Transport Department and Karnataka Government, as ridesharing products like ‘UberPool’ is the future of urban mobility, helping decongest cities by getting more people into fewer cars.”

A month ago, the same scenario took place in Hyderabad. Drivers of Ola and Uber in Hyderabad have called for a five-day strike from 31st December 2016 to 4^th January 2017, due to the low earnings. Telangana State Cabs and Bus Operators Association (TSCBOA), Telangana State Cab Owners and Drivers Association (TSCODA) and Telangana Cabs Association (TCA) are the active bodies to protest against low earnings due to more number of vehicles and insufficient bookings. Unfortunately, the government of Telangana has not responded to any of their issues. Read more news.

Karnataka Government Gives 3 days To Ola and Uber To Stop Cab Sharing Services