Karnataka Govt pulls up Uber, Ola over license issue

App-based ride-hailing operators Uber and Ola have applied to the Transport Department for the grant of licence to do business as aggregators in response to the April 2 policy notified by Karnataka.

The policy , among other things, requires cab aggregators to comply with the notified fare structure and not demand "surge pricing."

Although there are eight firms that are doing business as app-based ridehailing services under the radio taxi scheme licence, only Uber and Ola have come forward requesting for licence under the new rules.

"I have asked the Transport Department to process the applications quickly and issue the licences at the earliest," Principal Secretary (Transport) EV Ramana Reddy told ET.

The new regulations require a firm to have a fleet of at least 100 cabs under its fold either by way of ownership or through tie-ups to be eligible to seek an aggregator licence. The Transport Department could not process the request from Uber and Ola as their applications were said to be incomplete.

"Their applications were not accompanied by security deposit and other requirements such as proof of minimum fleet of cabs. So we have advised them to comply with these," said HG Kumar, Additional Commissioner for Transport.

The app firms are required to pay a security deposit of Rs 1 lakh for a fleet of up to 1,000 taxis, Rs 2.5 lakh for up to 10,000 taxis and Rs 5 lakh for more than 10,000 taxis.

"The regulations have come into force early this month and we are putting pressure on the app-based operators to apply for licence. After an initial grace period, we have also begun the enforcement drive," he said. The department, he said, has started getting complaints from users about surge-pricing.

Cabs seized

Transport Department officials, meanwhile, have gone about seizing the cabs affiliated to Uber and Ola in Bengaluru on charges of flouting the permit conditions.

"In the past three days, we have seized about 300 Uber and Ola cabs for violating various permit conditions including demand for excess fare (surge pricing), and non-display of digital meters," said Narendra Holkar, Joint Commissioner of Transport (Bangalore Urban & Rural).

"The cabs are in our custody. We will produce the drivers before the court," Holkar said. Many cabs were seized at locations near the Devanahalli international airport.

source: techgig.com