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Ola, Uber on License Roller Coaster Now in Karnataka

For cab aggregators Ola and Uber, the message has finally come from the state transport department which has implemented the Karnataka On-demand Transportation Technology Aggregator Rules 2016 that they would be off-roads unless they seek and get a license.

The stat transport commissioner’s office on Saturday issued a statement that said: “Web-based aggregators had to obtain licences to operate cabs and taxis." It said those operating such cabs are violating the Motor Vehicles Act Sec-93 r/w 193.

The Karnataka On-demand Transportation Technology Aggregator Rules 2016, notified in April, said, “No person shall act or permit any other person to act as an aggregator unless he holds an effective licence."

Surge pricing, banned in Karnataka or in Bangalore to be specific, has remained a major headache for the state transport officials as both Ola and Uber continued with surge pricing which often goes up to three times and hapless customers were fleeced, mostly women and children. Karnataka rules prohit surge pricing beyond the fare fixed by the government for cabs.

Though Ola said it charges R.6 as base fare, majority of customers end up paying double or triple the fare which comes nearer the government fare but defeating the transparency factor in educating or cheating the customers.

Fearing onslaught, Uber and Ola temporarily suspended surge pricing from April 18 but little did it help them save from the cracking from the government.

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