Ola Share and Uber Pool, which offer rides at lower rates, have been a major hit in Bengaluru
Bengaluru may soon have to do without the popular car pool service offered by Ola and Uber. The Karnataka transport department has deemed it illegal and asked them to stop the services by Thursday. The department argues that the permits that these firms have allow only point-to-point rides and not multiple pick up and drop of passengers during a single trip, as happens in a car pool. Ola and Uber are yet to react to the order of the state transport department.
While the Centre has issued guidelines for app-based services that are not covered under the Motor Vehicles Act, the guidelines are not binding on state governments. In Karnataka, as in some other states, taxi aggregators and the state transport department have been at odds. And this has been most visible in services that compete with state-run bus services.
Transport Commissioner MK Aiyappa, who met representatives of Ola and Uber along with some drivers, said the department wasn't against car-pooling or ride-sharing services, but the existing rules don't allow these.
"The cab aggregators have asked for three days to comply. They may give proposals suggesting changes to the Act. We will take up the proposal with the state government," said Mr Aiyappa.
Ola Share and Uber Pool, which offer rides at lower rates, have been a major hit in Bengaluru and other metros. In Bengaluru, they are all the more popular since the city lacks a true mass transit system and is known for its nightmarish traffic. Shared services account for a significant chunk of business for Ola and Uber.
But following the stand-off with the transport regulator, Ola and Uber have been forced to withdraw bike taxi service. In 2015, shuttle service provider ZipGo's offices and vehicles were raided by the state transport department, which alleged that the firm was breaking rules. ZipGo, which denied the allegations, eventually had to halt the services.