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Ola clarifies after RTO bans cab aggregator in Bengaluru for 6 months

Hours after the Regional Transport Office issued a notice stating that the cab aggregator Ola was banned in the city of Bengaluru for a period of six months, Ola has now issued a statement saying that it was evaluating options to find amicable solutions to the issue.

Ola clarifies after RTO bans cab aggregator in Bengaluru for 6 months
Bengaluru, First Published Mar 23, 2019, 11:21 AM IST
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Bengaluru: Cab aggregator Ola who is back in the news for all the wrong reasons, has now issued a statement saying they are closely working towards resolving the issue at hand. Ola Cabs had been banned for a period of six months by the Regional Transport Office for operating bike-taxi services in the city which they were not permitted to do.

In its statement, Ola said, "We are evaluating all options to find an amicable solution wherein hundreds of thousands of driver-partners in the state of Karnataka can continue to work and serve the mobility needs of our citizens.”

The statement came just hours after news of the aggregator being banned spread like wildfire. The ban was initiated as Ola had allegedly flouted the Karnataka on demand Transportation Technology Aggregators Rules 2016.

ALSO READ: Ola cabs banned in Bengaluru for six months

“We have been closely working with the authorities on this topic, responding to queries and making proactive representations to the ministry. Despite other companies continuing to operate illegally, Ola halted our bike taxi experiment weeks ago, instead seeking the state’s cooperation to develop a legal framework for a pilot that will continue to take advantage of emerging opportunities in the mobility economy,” read the statement.

Ola further went on to say that the notification was unfortunate. “We look forward to an opportunity to address these concerns directly with state officials to find a solution for our driver-partners and millions of Ola users in Karnataka,” stated Ola.

Ani Technologies Pvt Ltd which had license to provide cab facilities, also began to operate bike-taxi services.

RTO officials reportedly seized 500 bikes and ordered Rapido, a bike aggregator service, and Ola to halt services.

Ola Cabs was further asked to provide substantial reason as to why they should be permitted to operate if they were found violating rules.

Although the cab aggregator’s response was not available, the RTO’s notice terms their explanation unsatisfactory and cancelled their license as per section 11 (1) of the Karnataka on demand Transportation Technology Aggregators Rules 2016.

Priyank Kharge, current minister for Social Welfare department has taken to Twitter to say that he has spoken to Chief Minister Kumaraswamy regarding the issue and will resolve it soon.

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