Peer-to-peer app-based taxi aggregator, Ola, is facing the wrath of the Transport Department, which has suspended its licence to operate for six months and ordered stoppage of its services in Karnataka. Officials said this decision was taken in light of the aggregator operating bike taxis illegally despite several warnings.
Though the order was issued on March 18, Ola had not shut down its app at the time of going to press. The department issued the order to ‘ANI Technologies Private Limited, Ola Cabs Bangalore’ under the provisions of the Karnataka on Demand Transport Technology Aggregators Rules, 2016. It directs the aggregator to surrender its licence to the “authority concerned within three days of receiving the order copy”.
A spokesperson from the aggregator said that the company received the order on Friday.
Transport Commissioner V.P. Ikkeri told The Hindu that the order was issued after Ola was found flouting the rules. “The Department had issued a licence to Ola only to operate mobile app-based taxis (motor cabs) in the city. But they were found illegally operating bike taxis. It is a clear violation of aggregator rules. Our officials had impounded the two-wheelers attached to Ola, carried out investigation and charge sheets were filed in court. The response given by Ola to the notices served by the department was not satisfactory. So action has been taken as per the rules.”
In the last one month alone, the enforcement wing of the Transport Department had impounded nearly 260 two-wheelers operating on Ola’s platform. The department has also directed RTOs to enforce the rules if Ola continues to operate taxis in the city in defiance of the order.
The Karnataka Auto and Taxi Federation and other unions of taxis had complained to the department demanding action against Ola and other platforms for operating bike taxis without legal sanction.
Ola had received a licence from the department to operate taxis in the city from June 2016 to June 19, 2021. In 2016, Ola and other taxi aggregators had attempted to operate bike taxis in the city, but were forced by RTOs to discontinue the service. In February, Ola re-launched its bike taxi service, but this time, the department ordered their licence to be suspended.
In a statement to the media, the aggregator termed the notification “unfortunate” and said it was evaluating all options to find an amicable solution wherein hundreds of thousands of driver-partners can continue to work.
“We have been closely working with the authorities on this topic, responding to queries and making proactive representations to the ministry. Despite other companies continuing to operate illegally, we halted our bike taxi experiment weeks ago. Instead, we sought the State’s cooperation to develop a legal framework for a pilot that will continue to take advantage of emerging opportunities in the mobility economy,” the company stated.
