Surge price: Ola seeks more time to reply to notice

Having come under fire for introducing surge pricing and shuttle service in Bengaluru, cab aggregator Ola has once again sought more time from the Transport Department for responding to a show-cause notice served on July 11.

The department has already given the cab-hailing firm two extensions to reply to the notice. But Ola wants some more time saying it is still examining the technical issues raised in the notice. Besides, a petition on surge pricing is pending before the High Court.

Acting on complaints by a rival firm and Ola’s users, the department had served it a notice, asking why its (Ola’s) licence should not be cancelled for violating the Karnataka On-demand Transportation Technology Aggregators Rules, 2016.

In-charge Transport Commissioner H G Kumar told DH on Sunday that Ola had submitted a partial clarification besides seeking more time.

Explaining the legal procedure for action against violators of the new rules, Kumar said Ola’s clarification had to be placed before the State Transport Authority (STA) for the next course of action. Further, he said, the High Court has given an interim stay on surge pricing. Considering this, the department will not take action until the issue is resolved in court, he said.

Ola’s rival Uber has challenged the new rules in the High Court which is yet to adjudicate the matter. Traditional cab service providers and Ola have also gone to court over the new rules.