<article>Located in the southern state of Karnataka, Bengaluru is India’s start-up hub, the country’s attempt at recreating the success of the Silicon Valley, the capitalist and technological hub of the world.</article>

Located in the southern state of Karnataka, Bengaluru is India’s start-up hub, the country’s attempt at recreating the success of the Silicon Valley, the capitalist and technological hub of the world.
Yet, it is also often the battleground for the clash between India’s Internet start-ups and regulators which are continually scrambling to wrap their heads around the new, dynamic models not covered by outdated laws.
For nearly two years now, Karnataka has forced <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Amazon">Amazon</a> to severely cut back on its operations in the state by banning many third-party sellers from working with the online marketplace. Amazon has instead set up 20 warehouses across the country, including some in neighbouring states that are benefiting from jobs and tax revenues at the expense of Karnataka.
Over the weekend, Karnataka’s state transport department said that the government has implemented the state’s On-demand Transportation Technology Aggregator Rules 2016, and that taxi aggregators such as <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=ola">Ola</a> and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Uber">Uber</a> that are yet to obtain relevant licences should immediately stop operations . The rules will require Ola and Uber to rein in their surge pricing practices, hire only those drivers who have a “working knowledge” of Kannada and have lived in the state for at least two years, among other requirements.
The government stopped the two companies from operating bike taxis in March.
In a city that is infamous for its poor infrastructure and inadequate transportation system, these moves hurt the mobility of its citizens without providing for alternatives or particularly ensuring their safety. They also hit the livelihood of people working with the likes of Amazon and Ola such as small merchants and independent drivers.
Bengaluru is by default the test market for many of India’s start-ups because of its young, tech-savvy population, poor infrastructure and rising disposable incomes, among other reasons.
But to truly become a booming hub, it will need a lighter hand from regulators who’ve until now been all too willing to take extreme, regressive steps that hurt consumers, workers as well as the state’s coffers.
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<h4 style="text-align: justify;">This story was first published on <a href="http://www.livemint.com">livemint.com</a></h4>

Bengaluru needs a lighter hand from regulators who’ve until now taken extreme, regressive steps that hurt consumers, workers as well as the state’s coffers

Bengaluru turns battleground for regulators and startups

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