Ride-hailing companies in India – Ola and Uber – have hit a speed bump with the Karnataka Transport Department directing them to stop their ride-sharing services (car-pooling) in the state with immediate effect, reported several media.
The department has warned the companies of action if they continued offering the car-pooling feature on their app.
No official statements have been released by Ola and Uber on the ban yet.
The department has stated that car-pooling services offered by Ola and Uber are illegal going by the current Karnataka Motor Vehicles Act.
After a meeting with drivers working with these cab aggregators, Karnataka Transport Department Commissioner VP Ikkeri said that there is no provision for carpooling services under the present transport rules and, therefore, the services should be stopped immediately.
Meanwhile, the state transport department has forwarded its decision to the Karnataka government for its final decision on the matter.
This is the second-time Ola has faced the wrath of the Karnataka government over its services.
Earlier in March, the transport department had issued a letter to Ola operator ANI Technologies cancelling its licence in Bengaluru for six months for operating bike taxis illegally using fake licenses. The department, however, revoked the suspension a few days after Ola agreed to pay a fine for running such services.