Karnataka suspends Ola's licence for six months

Running bike taxis without permission has landed Ola in soup with the Transport Department suspending the licence of the company with immediate effect for the next six months.

The Transport Department had on March 5 issued a show-cause notice to the app-based cab aggregator for the bike taxis, which have remained a contentious issue with state transport corporations like BMTC objecting that such services hit their revenue.

Last month, the Transport Department brought the entire state under the nationalised route, making the roads exclusive domain of public transport corporations. Though old licences were not cancelled, the department said no new licence will be provided to private operators.

"Based on the report given by senior officials in the Regional Transport Office, the licence given to M/S Ani Technologies Pvt Ltd, Ola Cabs to operate taxis till June 19, 2021 has been suspended under The Karnataka on Demand Transportation Technology Aggregators Rules, 2016," the notice issued by Commissioner for Transport and Road Safety said.

In response, an Ola spokesperson said it was a law-abiding company that has always worked with the government. "We are evaluating all options to find an amicable solution wherein hundreds of thousands of driver-partners in the state of Karnataka can continue to work and serve the mobility needs of citizens. We have been closely working with the authorities on this topic, responding to queries and making proactive representations to the ministry. ," it said.

The company also said that it stopped the bike taxi operations "weeks ago" while other companies continue to provide the services illegally. "Despite other companies continuing to operate illegally, Ola halted our bike taxi experiment weeks ago. (We are) seeking 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," it said.

Terming the notification "unfortunate", Ola said, "We look forward to an opportunity to address these concerns directly with state officials to find a solution for our driver-partners and millions of Ola users in Karnataka."