Ola has obtained licence under the Karnataka On-demand Transportation Technology Aggregators Rules 2016. The homegrown cab aggregator was able to obtain the license after registering and providing the necessary information of 100 vehicles to the transport department.
Ola and the transport department in the state were into a long battle over the licence issue. The department had seized over 3,000 Ola cabs as part of its enforcement drive in the city over the past two months. Ola is now the first cab aggregator to operate legally in the Karnataka state.
As per the requirements of the On-Demand Transportation Technology Rules that came into effect in April, cabs need to install digital meters, panic buttons and GPS units. The rules that came into force on April 2 makes it compulsory for aggregator companies to put a cap on surge pricing.
Besides Ola, five other aggregators like Uber, TaxiForSure, Ridz, Shreyas and Welink have applied for the licence.