Karnataka gov asks Uber, Ola to suspend carpooling service

On June 28, 2019 Karnataka Transport Department informed Ola and Uber to withdraw their carpooling services under the provisions of the Karnataka Transport Act. The transport department is planning further action after consulting with the State government.

Transport Commissioner VP Ikkeri said that action would be taken against the firms that facilitate carpooling as and when such violations are brought to the notice of the officials. Drivers complained that both Ola and Uber provide them inadequate sums for ridesharing trips. Although this move has not been welcomed by riders. This is not the first time the ride sharing services have run into government trouble.

On March 19, Ola’s licence was suspended by Regional Transport Department of Bengaluru for 6 months. Their license was suspended for running bike taxis and violating government rules. However, the ban was lifted within a week.

Prior to this, in February, the State transport department also pulled up the bike taxi startup Rapido to stop its services immediately. It stated that the ride-hailing app has been illegally operating the bike-taxi services through alleged 'fake licences'.