Ola and Uber are the prime ride-hailing services in metro cities of India with regular commuters using their services throughout the day and even during the night. These two app-based services have certainly enjoyed a great year until now with Uber, an international company reaching its IPO landmark.
But the decision of the Karnataka Transport Department ordering both these companies to withdraw their pool services in Bengaluru has come up as a major jerk to their smooth progression. The decision made during a closed-door meeting has been imposed with an immediate effect.
A Big Disappointment For Commuters
This new imposition is sure to bring a big disappointment to the commuters who have been enjoying the benefits of pool services. However, it is not the first time that these ride-hailing services are facing such an issue. In March last year, Ola faced the same troubles when the Regional Transport Department issued a notice to the parent company of Ola, ANI Technologies demanding suspension of its app-based cab services in Bengaluru.
In its two-page letter to ANI Technologies, the transport department alleged that the ride-hailing app was operating the bike-taxi services illegally using fake licenses. The letter further said that the transport department is suspending the license of the company for the next six months thereby banning all its services. It was a way of the department to say that the app-based services were against the Karnataka Motor Vehicles Act.
Now the Karnataka Transport Department has said that the carpooling option offered by Uber and Ola is illegal despite the fact that the government had itself withdrawn the earlier ban.
Ola To Work Closely With Authorities
In its official statement, Ola has said that it is working closely with the authorities by responding to the queries and making proactive representations. The statement further says, “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 our citizens.”
Ola recently made headlines when it announced a strategic partnership with Hyundai Motor Group. Through this collaboration, both Hyundai and Kia Motor Corporation will contribute $300 million investment jointly in Ola. In May 2018, Ola managed to raise a funding of Rs.650 crore from Sachin Bansal, the Co-founder of Flipkart.