The problem for the cab aggregators continues. According to the recent reports, Karnataka government has deemed Ola and Uber illegal for not complying with the licensing laws of the state, and has ordered the aggregators to stop operations immediately.

As per the report, the aggregators who are operating unlicensed cabs in the city will have to shut operations with immediate effect as this is violation of the section 193 of the motor vehicles act.

In a statement issued on Saturday, the state transport department stated that the government has implemented the Karnataka On-demand Transportation Technology Aggregator Rules 2016, according to which, it requires businesses to hold “effective licence issued to him under these rules”.


“Web-based aggregators had to obtain licences to operate cabs and taxis. But many aggregator companies have not obtained licences, but are operating such cabs. This is a gross violation under sec-93 r/w 193 of the Motor Vehicles Act. Hence, companies which have not obtained licences from the concerned authority should stop operations with immediate effect otherwise strict action will be taken against such operators,” the statement stated.

Uber spokesperson stated,

“We have applied for a licence under the Karnataka On Demand Transportation Technology Aggregator Rules, 2016 and the required inspection by the Transport Department was initiated yesterday. We are sharing all necessary paperwork required by the Transport Department and are awaiting our license. Meanwhile, we are in talks with the RTO regarding the ongoing enforcement drive and are hopeful of a quick resolution.”

According to a Bangalore Mirror report, the Karnataka’s Transport Department has seized over 60 cabs near Kempegowda International Airport and near roads for not having license. The report also stated that the department has already sent two notices to the companies to stop operations, as they do not have licenses under the new rule and thus are illegal.

A TOI report mentioned that over 200 cabs were seized near HSR Layout and surrounding areas.

A report by Hindu, citing the RTO stated that the enforcement action would continue this week as no licenses had been issued under the new rules yet.

Last month, Karnataka become the first Indian state to cap the surge pricing that an aggregator can charge. During March, just a couple of days after Uber and Ola launched their bike taxi service in Bengaluru, the Karnataka government’s transport department had termed the new service as illegal and has asked the citizens not to use them.

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Biplab Ghosh

Biplab lives his life around technology and is particularly keen to explore the intersection of technology and human behaviour. Always looking for new ideas, and ways that can make things simpler. He is a geek with the flair for travel and has great passion for music and theatres.

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