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Karnataka State Transport Authority to Take Up Hearing for Uber and Ola

CIO Insider Team | Friday, 2 December, 2022
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The Karnataka State Transport Authority will take up for hearing on December 6 the applications of ride-hailing service providers Uber and Ola for renewal of their licence to operate in Bengaluru.

Rapido has also applied for a license to operate auto rickshaws in the city through its platform, but officials said the transport authority will take it up only after the initial inspection procedures are completed.

The licences of ANI Technologies (Ola) and Uber Technologies Inc. for Bengaluru had expired in June and December 2021, respectively, but their operations have remained unaffected because of a court order that stopped authorities from taking any coercive action after the companies argued that they are not transport operators and only provide the technology platform.

The transport department had issued licences to the two companies under the Karnataka on Demand Transportation Technology Aggregator Rules, 2016 for a five-year period. The rule requires licence holders to file for renewal 60 days before the expiry of the permit.

L Hemanth Kumar, secretary, State Transport Authority says, “We will hear the applicants and seek clarifications, if any, before considering their applications for further processes.”

The Internet and Mobile Association of India (IAMAI), meanwhile, has given a memorandum to the state government urging it to revise auto rickshaw fares on a yearly basis linking it to inflation, remove the 10 percent cap on platform fee

Karnataka is among the first states in India to come up with regulations to deal with on-demand cab aggregators, as Bengaluru is among the largest markets for app-based rides in the country, making it vital for aggregators to have smooth operations.

The Internet and Mobile Association of India (IAMAI), meanwhile, has given a memorandum to the state government urging it to revise auto rickshaw fares on a yearly basis linking it to inflation, remove the 10 percent cap on platform fee, allow a flexible pricing regime to optimize driver availability and rider demand, and have consultations with mobility platforms twice a year.

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