In a relief to commuters in Karnataka, the state government Sunday revoked the suspension on online cab aggregator Ola Cabs Ltd, just two days after announcing it. Ola’s license was suspended for six months after the company flouted rules and started operating "two-wheeler taxi service" without permission.
".@Olacabs 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," Karnataka Minister for Social Welfare Priyank Kharge wrote on Twitter on Sunday.
A report by a transport commissioner alleged that Ola violated license rules by starting an app based two-wheeler taxi service on a trial basis without a policy being established for licensing of such services. The licence of Ola in Karnataka issued by the transport department under the Karnataka on Demand Transportation Technology Aggregators Rules 2016 and valid till 2021 was cancelled on the basis of February 13, 2019, report of the transport commissioner.
Earlier this year, Ola had started the bike services in pockets of Bengaluru as a pilot project. "Despite other companies continuing to operate illegally, we halted our bike taxi experiment weeks ago," Ola said, adding it had sought the state's cooperation to develop a legal framework for a pilot.
The transport department has reported seizing several two-wheelers used for the unlicensed taxi services earlier this year. The department ordered the suspension of Ola cab services after the company did not reportedly provide satisfactory responses to notices issued for license violations.