Saturday, February 4, 2017

30 cabs impounded, Karnataka gives Ola & Uber 15-days breather 

"Representation was made by officials of both the companies, seeking 15 days time. We have given them the time to comply," state transport commissioner.He however added that the department understands the benefits of sharing rides and is looking into the matter Over 30 vehicles of ride hailing firms Ola and Uber were impounded by the Karnataka transport department within an hour of violation of ban even as both companies were given a fortnight's deadline to comply, thereafter. "Representation was made by officials of both the companies, seeking 15 days time. We have given them the time to comply," state transport commissioner. He however added that the department understands the benefits of sharing rides and is looking into the matter accordingly. The Karnataka transport department had asked both the companies to withdraw ride-sharing service in the state citing that to be illegal, earlier this week. The companies were given time till Thursday, however since no representation came till then, the Karnataka state transport officials started impounding the vehicles on Friday morning, It was only after the companies sent their officials with written requests, were the orders withdrawn, Aiyappa said.

 As per the contract carriage permits, that these companies have, they are not allowed to pick or drop passengers in the middle of a trip. It only allows for point to point pick up and drop. In an email response, Uber's spokesperson said, "We will continue to engage with the transport department and Karnataka government as ride sharing products like Uber pool are the future of urban mobility, helping decongest cities by getting more people into fewer cars and letting riders move around their city more affordably." "In fact, the recent expert committee report on urban mobility which has been accepted by the Ministry of Road Transport and Highways expressly recommends and recognizes seat sharing in taxis as eco friendly and being a cheap transportation option. Nevertheless, we have taken into account the concern expressed by the transport department and will be seeking to address them," he added.

 However the company did not respond on their strategy post the completion of 15 days deadline. Ola did not respond to an email. Even as the vehicles were impounded, the orders received flak by the media which calls it a regressive move. Sharing a ride is not just economically better for drivers as well as passengers, it also leads to reduced carbon footprint. Both the companies offer reduced fare to passengers opting for pooled rides. The discounts on a pooled ride versus a shared trip can range between 20-50 percent. Over 25 percent of the total trips in Bangalore are pool trips for Uber. The company claims that Uber pool drivers have prevented 93,64,772 kilometres of unnecessary driving in the last one year which equals to 4,40,623 litres of fuel saved. 

According to some media reports, Chennai has also ordered a ban on the ride sharing services. Uber however said that the company is "yet to receive any indication from the concerned authorities regarding intent to pause Uber pool services in Chennai." This however is not for the first time that the cab aggregators have been in confrontation with the state government. In November, the Karnataka government had directed the taxi operators and drivers of Ola and Uber to acquire either a state or city taxi permit. In March, Uber and Ola had to suspend their motorcycle taxi service following a ban by the Karnataka state government 

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