Uber versus Ola slugfest continues in court: Here is what the case is about

By: | Published: June 29, 2016 11:46 AM

Uber and Ola have been at loggerheads with each other for quite some time.

UberUber had moved the court after the transport department impounded the vehicles for not securing licences under the new norms. (Reuters)

Uber and Ola have been at loggerheads with each other for quite some time.

A case in the Karnataka High Court has come under limelight where ANI Technologies, engaged in providing mobile app-based technological platform by the name of Ola Cabs submitted that it has complied with all requirements of government rules for its operations.

Ola submitted this in its counter to a petition by rival Uber India challenging the Karnataka On-Demand Transportation Technology Aggregator Rules, 2016.

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Uber had moved the court after the transport department impounded the vehicles for not securing licences under the new norms.

It also suspended taxis, which led to protests by drivers.

Drivers have also independently filed a petition in court.

The transport department had in April hit the cab aggregators by increasing the penalty from Rs 1,000 to Rs 5,000, for allegedly operating services without obtaining necessary license, despite its repeated warnings.

We take a look at what the case is about

Counsel for ola alleged that Uber was continuing illegal activities, giving scant respect to the laws of the country.

The counter charged that Uber’s petition was motivated and filed in an attempt to bypass the laws of the land by foreign companies who run their operations in India for profit without due regard for applicable laws.

On the contrary, Ola, being a law-abiding company, has complied with all requirements of the rules and a license there under has been issued to it to run its operations on June 20 by the competent authorities, he said.

Uber had, in its petition, challenged the authority of the state government to frame the rules under Motor Vehicles Act, 1988.

Ola’s counsel also claimed that Uber had been running motorcycle-taxi operations under “UberMoto” on its platform with white number plates in Bengaluru city for over three months in spite of the fact that around 120 of such bikes were impounded by the authorities.

“Uber continues to offer such motorcycle-taxis (with white number plates) on its platform in Gurgaon, Haryana, despite the fact that the competent authorities have issued a public notice in this regard,” Ola’s counsel said.

The authorities had also served two other notices to Uber directing it to stop and desist from providing its “illegal activities” on its platform. However, it was continuing the same, he alleged.

Taking into account the non-compliance of laws, authorities in Bhopal had taken action against Uber and sealed its offices, the counsel said.

Ola, India’s third most valued startup after Flipkart and Snapdeal is present across 102 cities in India and users can book from over 4,50,000 vehicles across cabs, auto-rickshaws and taxis.

Ola has also introduced a range of shared mobility services on its platform like Ola Shuttle and Ola Share for commute and ride-sharing respectively.

Meanwhile in the United States, Uber and Lyft have settled high stakes litigation involving two of their top executives, court filings show, in advance of a trial that could have aired sensitive details about both companies.

Lyft and its former chief operating officer Travis VanderZanden ended litigation in a California state court in which Lyft accused VanderZanden of breaking his confidentiality pledges when he went to work for Uber.

Uber also withdrew a subpoena on Monday in separate litigation over a data breach at Uber, which had targeted an Internet address assigned to Lyft’s chief technology officer (CTO), according to a court filing.

A growing number of automakers are placing bets on ride-hailing firms.

Toyota has invested in Uber, while Volkswagen has bought a stake in Gett in Europe and General Motors has backed Lyft in the United States.

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