Ola and Uber may have to stop ride-sharing services in Karnataka after the state transport commissioner deemed them to be illegal. The move is likely to impact the businesses of both firms, given that Bengaluru, the Karnataka capital, is one of their top three markets, alongside Delhi and Mumbai.
According to the Karnataka government, Ola and Uber contract permits only allow the companies for pick up and drop and does not allow stops during a single trip. Karnataka Transport Ministry said the cab aggregators need state permission to offer ride pooling services and also that the companies should not have started pooling service without notifying government.
“Ride-sharing is not possible because they have contract carriage permit, which is for point-to-point drops and not picking up customers in between,” said M.K. Aiyappa, state transport commissioner.
Cab sharing option has been promoted by the companies in times like today when the traffic is getting worse and roads are always jammed at even normal hours. Pooling is a good alternative to driving, thereby saving fuel, reducing congestion and promoting a cleaner environment.
“We believe UberPool is clearly within the law. We will continue to engage with the transport department and the Karnataka government as ride-sharing products like UberPool are the future of urban mobility, helping decongest cities by getting more people into fewer cars and letting riders move around their city more affordably,” as reported by FactorDaily.
Many states, including Maharashtra, are very much in favour of ride-sharing services because of the reduction in travel costs as well as road congestion. However, we’d like to point out that Maharashtra’s draft proposal on taxi services is openly hostile to app-based cab-aggregator services and is pending approval with Maharashtra’s Chief Minister.