Ola gets aggregator license to operate in Karnataka

Bengaluru, June 22: After a long-drawn struggle between Ola and the Karnataka state transport department, Ola Cabs becomes the first licensed cab aggregator in India.

The Karnataka On-demand Transportation Technology Aggregator Rules 2016 which mandates the companies to cap surge pricing and the fare should not exceed Rs19.50 per km for an AC car and Rs14.50/km for non-AC vehicle along with carrying GPS/GPRS enabled monitoring system.

The Economic Times reports that the Karnataka state government has given Ola the license to operate in the state after the cab aggregator was able to meet the conditions of the new guidelines for cab aggregators. This makes Ola the first cab aggregator to operate legally in the state. When contacted by MediaNama, Ola refused to comment.

The other companies that have applied for the license are Uber, TaxiForSure, Ridz, Shreyas and Welink.

H G Kumar, state transport authority officer told TOI in an exclusive chat: “I have signed and approved the license for Ola on Monday. They are now legalized as cab aggregators in Karnataka. But they have furnished details of 100 vehicles only. They have to make several other arrangements as per the new regulations.”

The tussle between Ola, Uber and transport department has been going for a long while now. Over a 100 taxis belonging to Ola, Uber were seized in an enforcement drive conducted by the state transport department in north Bengaluru in the month of April.

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