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Ola faces action over surcharge, shuttle service

Transport authority waits for cab aggregator's reply to its notice
Last Updated 12 July 2016, 20:08 IST

Cab aggregator Ola faces action from the Transport Department for violating several conditions laid down in the Karnataka On-demand Transportation Technology Aggregators Rules, 2016.

The State Transport Authority (STA) issued a show-cause notice to Ola on July 5 for collecting surcharge from customers under ‘peak-hour charges’.

Ola faces another charge of introducing the maxi cab (12+1 seater) service in Bengaluru though the entire city falls under the nationalisation of areas scheme. Under this scheme, private operators are barred from introducing a shuttle service under stage carriage permit. Ola introduced shuttle service on its app, which is not permitted.

H G Kumar, Additional Commissioner, Transport, and Secretary to the STA, said Ola had not yet given an official reply.

The next course of action will be decided only after Ola replies to the notice, he said. The decision to slap a notice was taken after many Ola customers complained to the STA about the surcharge.

As per the rules, the charge for an A/C cab is Rs 19.5 per km and Rs 14.5 per km for a non-A/C cab. The rates apply to online taxi aggregators too. The new rules empower the STA to cancel aggregators’ licence if it finds that they are not abiding by the norms.

Ola is now the only aggregator in Karnataka which has obtained licence under the new rules. Uber and other aggregators are yet to complete the procedures to obtain licence.

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(Published 12 July 2016, 20:08 IST)

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