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Ola cabs will run their business as usual from today, says Karnataka Minister

BusinessToday.In     March 24, 2019

Two days after Karnataka Transport Department revoked the licence of Ola, Priyank Kharge, the social welfare minister in the state, tweeted that app-based cab aggregator will run their business as usual from today.

"Ola cabs will run their business as usual from today. However there is an urgent need for policies to catch-up with new technologies & also industries too should work closer with Govt to help evolve policies for innovations," Priyank Kharge tweeted on Sunday.

Responding to a user complaint about state-wide ban on the Ola cabs, the Minister said that the decision to resolve the issue was made after a meeting with Karnataka Chief Minister HD Kumaraswamy and his deputy G Parameshwara.

"Our Govt will maintain a healthy balance between investors, industries, consumers and welfare within the ambit of law," the Minister said.

Also Read: Ola banned in Bengaluru: State govt open for talks with company over six-month ban

Earlier this week, Karnataka government had issued a notice to suspend Ola's licence for six months for violating government rules by running motorcycle taxis which are not allowed for safety reasons.

"Based on the report given by senior officials in the Regional Transport Office, the licence given to M/S Ani Technologies Pvt Ltd, Ola Cabs to operate taxis till June 19, 2021 has been suspended under The Karnataka on Demand Transportation Technology Aggregators Rules, 2016," an order from the Karnataka Transport Department said.

Responding to the ban, Ola said that it is a law-abiding company. The statement by the cab-hailing service emphasised that it has always worked with the Government to develop livelihood, improve mobility, and enable a new technology industry.

Also Read: Ola loses licence in Karnataka for running bike taxis in Bengaluru

It is to be noted that Karnataka's capital and technology hub Bengaluru is among Ola's top three markets in India. Ola's permit, obtained in 2017 and valid to 2021, allows it to run three and four-wheeler taxis in the capital city of Karnataka as well Mysuru, Manglore and Hubli.

Edited by Chitranjan Kumar

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