Cab aggregators Ola, Uber get 15 days on ride-shares in Karnataka

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Bengaluru | Published: February 4, 2017 6:17:27 AM

The Karnataka transport department on Friday allowed cab aggregators Ola and Uber to continue with their shared services, Ola Share and UberPOOL, for another 15 days.

According to transport department norms, Ola and Uber come under contract carriage permits and there is no provision in the law for allowing them to pick and drop multiple passengers from different locations. (Reuters)According to transport department norms, Ola and Uber come under contract carriage permits and there is no provision in the law for allowing them to pick and drop multiple passengers from different locations. (Reuters)

The Karnataka transport department on Friday allowed cab aggregators Ola and Uber to continue with their shared services — Ola Share and UberPOOL — for another 15 days, reports fe Bureau in Bengaluru. The two companies had made a representation to state transport minister Ramalinga Reddy and transport commissioner MK Aiyappa seeking an extension of the earlier deadline.

Aiyappa told FE the two had been given 15 days more to comply with the state government’s order. “Meanwhile, they can submit a proper representation asking for an amendment to the existing rules permitting them to offer ride sharing services. We will examine it and forward it to the state government for suitable amendment,” he said.

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Aiyappa said the department had impounded 30 cabs belonging to the two cab aggregators on Friday morning for violating the department’s order. According to rules, cab drivers cannot offer ride-sharing services — picking up passengers from multiple locations and dropping them at different locations. The transport department had given them till Thursday to discontinue the service. An Ola spokesperson declined to comment on the development but confirmed that the company had not removed the shared service option from its app. An Uber spokesperson said that it continued to offer the shared service as it believes it fulfils requirements to provide shared services.

According to transport department norms, Ola and Uber come under contract carriage permits and there is no provision in the law for allowing them to pick and drop multiple passengers from different locations.

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“We are in constant dialogue with the state transport department in this regard. Our talks with the transport department remained inconclusive on Thursday. We are still talking to them. We hope our explanation has satisfied them,” the Uber spokesperson added.

The state transport department had earlier this week instructed Ola and Uber to shut down ride sharing service as it pointed out that contract carriage permits only allowed for pick up of passengers from one point and drop at another. The department had warned of strict action for violation of the rule.

Meanwhile, Ola also hit social media platforms asking Bengalureans to sign a petition to support shared service.

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