Ola, Uber licences expired last year in Karnataka

Licences issued to cab aggregators Ola and Uber expired last year, transport officials said on Friday. They say they can’t act against the aggregators because of a case pending before the Karnataka High Court.

Aggregators are mandated to get licences from the government under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016. Ola and Uber have challenged the rules.

The court struck down some provisions and told the transport department not to initiate coercive action—such as seizing vehicles—as it had led to distress among drivers.

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Officials in the transport commissioner’s office said Ola’s licence to aggregate cabs expired in June 2021 while Uber’s expired in December 2021.

When the companies approached the Transport Commissioner to renew their licences, officials sought details of their operations and compliance with the rules.

“The companies have not given written replies to many of our notices. They have communicated verbally that they will challenge the notices before the High Court. Once the matter is resolved, we can proceed to enforce the rules,” an official said.

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Another official said the department had filed about 300 cases against Ola and Uber for collecting exorbitant fares.

“Unfortunately, we end up penalising the drivers who have no say in deciding the fares. It has become difficult to hold the companies to account,” he said.

Even as passengers complain of exorbitant fares, drivers say their earnings have dipped. “The aggregators are essentially middlemen who invest the least. In some cases, they take 30 per cent of the fare,” said Rudramurthy of the Autorickshaw Drivers Union.

In the case of Rapido, officials said a ‘legal vacuum’ had allowed the company to operate without a licence. “The bike taxi policy notified by the government allows only electric vehicles. However, the company has approached the High Court, which told us not to initiate action till some of these issues are resolved,” an official said.