The Karnataka Transport Dept Asks Uber And Ola To Withdraw Carpool Services From This Friday

The Logical Indian Karnataka

February 1st, 2017 / 3:49 PM

Source:LiveMint | Image Courtesy: twimgfirstpost

The Karnataka Transport Department has given Ola and Uber time to halt their ride-sharing services in the state. The service has been deemed illegal by the department.

As per the department, the ride-hailing firms have contract carriage permits. This does not allow them to pick up or drop passengers during a trip. The contract carriage permits allow point-to-point pick-ups and drops along a particular route.

MK Aiyappa, the state transport commissioner, had a meet with Uber and Ola officials along with the drivers affiliated with the firms on Monday. After the meeting, Aiyappa announced that the contract carriage permits issued under the Motor Vehicles Act, 1989 do not allow cabs to pick passengers from different points and drop them at various destinations. The taxi companies have sought three days time to comply with the legality of the service. The software of both the firms will be changed and after the deadline on Friday, if not met action will be taken against cabs


Petition to Justify
MK Aiyappa stated that the department is not averse to the idea of sharing rides as it helps to reduce traffic on roads, besides offering lower prices to consumers. Both the companies could submit a petition to the Transport Department justifying why the sharing rides should be allowed. The petition will be then forwarded to the government for consideration, as reported by LiveMint.


Impact on the business
The halt on sharing rides is likely to impact the business of both firms. In a city like Bengaluru, it will affect the customers. Of lately, both the companies have been promoting pooling rides.


Past withdrawals
The State Transport Department had forced ZipGo, a shuttle service provider to withdraw its operations in Bengaluru in December 2015 on similar grounds. As per the regulations, there were no provisions in the Karnataka Motor Vehicle Rules of 1989 for services which compete with state-run city buses.


People’s reaction
People on twitter have not been happy with the idea to halt the share rides.

Few tweets like:



This is evident that people have not welcome such step by the Karnataka Transport Department. Let’s see how it goes in long run.


Ola
Ola is a trade name of ANI Technologies Pvt Ltd. It is an Indian online transportation network company. It was found as an online cab aggregator in Mumbai on December 3, 2010. It is now based in Bangalore since September 2015.


Uber
Uber is a privately held company of Uber Technologies Inc. Its headquarters are in San Francisco, California. It was found in March 2009. The service is available in 66 countries, over 545 cities worldwide.


Contributors

Edited by :

Share your thoughts..

Related Stories

Ola Uber Govt Officals

Karnataka Govt Officials May Lose Comfort Of Private Cars, To Travel By Ola, Uber Now

Ola Driver Woman Passenger

Bengaluru: Ola Driver Allegedly Masturbates In Front Of Passenger, Ola Blacklists Him

Ola Driver Molests & Asks Passenger To Strip, Police Says Security Lapses From The Company

Ola & Uber Drivers On An Indefinite Strike From Today In Major Cities

Voice Of Customer: Dear Government, We Need Regulations Against The Surge Pricing Of Ola/Uber Or Such Services

OLA Is Running Fake Account Racket To Harm Our Business, Says UBER

Latest on The Logical Indian

Awareness

Made In India Stents Just As Good As Their International Counterparts, Study From Germany Shows

Exclusive

This Website Needs Your Personal Details For NaMo T-Shirts. Here’s Why It’s Worrisome

News

Monkey Menace: Two People Killed In Agra On Same Day; Monkey Population Reaches 50,000

Exclusive

My Story: “I Saw A Kid Staring At The Ferris Wheel, He Didn’t Have Money Or Courage To Go Up”

News

On Family’s Request Kathua Victim’s Lawyer Removed From Case Over “Non-Appearance” In The Case

Awareness

Low IQ Among Indian Children, Is Iodine Deficiency The Secret Reason?

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.