Ola Cabs Banned in Bangalore for Six Months

Key Highlights

Ola’s license to operate in the state of Karnataka was revoked for six months

Ola’s failed to comply with the order to dismiss illegal two-wheeler taxi services

The state of transport had seized more than 400 two-wheeler taxis connected to Ola

OLA is one of India’s most known tech start up which was founded on 3rd December 2010 by IIT Bombay duo, Bhavish Aggarwal, and Ankit Bhati. Bhavish has also been a part of Microsoft, he worked there for two almost years after graduation. However, Bhavish resigned from Microsoft to start an online company and sell short term tours and holiday packages online. In December 2010, Bhavish with help of Ankit Bhati introduced OLA Cabs in Mumbai, India and is currently headquartered in Bangalore.

Ola’s license to operate in the state of Karnataka was revoked for six months due to homegrown cab’s failed complying the order to dismiss illegal two-wheeler taxi services. The Bangalore headquartered company assure it would work to settle the matter with the state government. A letter was issued to Ola’s parent company, ANI Technologies Pvt Ltd on 18th March by the state transport department instructed the company to dismiss all of its running operations in the state, within three days.

According to the notice, “The board of Karnataka Transport Department has seized several two-wheeler bikes As ANI Technologies Pvt Ltd, which manages Ola, has contravened the Karnataka On-demand Transportation Technology Rules 2016. As of now their aggregator license, which was issued for a period up to June 2021 remains expelled.”

“On 15th February 2019, the Transport Department had issued a notice to the ANI, asking the company to respond to the discovery of the investigation. Ola sent its respond on 3rd Match, 2019, but the reply was not satisfactory. Ola’s reply lacked evidence which proved the contravention of the Act. The Transport Department has decided to revoke the company’s operating license for six months. Ola will have to provide the authentic copy of the license within the next three days of receiving this order.”

On18th February 2019, the state of transport had seized more than 400 two-wheeler taxis connected to Ola. V P Ikkeri, The commissioner of Transport Department has confirmed the development and stated that in case Ola violates the latest suspension order, the department would undertake action against them by seizing their cars and penalizing the drivers connect to its platform.

In the response, Ola said, “Ola is a law-enduring firm that has always assisted the government to develop livelihoods, enhance mobility and allow a new technology industry. We are assessing all the chances to find a polite solution. While there are hundreds of thousands of driver-partners in the state of Karnataka, who can continue to work and offer the mobility requirements of our citizens.”

“This notification is miserable, and we wait for a good opportunity to address these troubles directly with the officials to look for a better solution for our connect driving partners and millions of Ola passengers in the state of Karnataka,” they added.

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Rajat Mehrotra

Rajat is passionate about writing and finding new startup stories
Rajat Mehrotra

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