Ola faces govt backlash in Karnataka over convenience fee for Prime Play cabs
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Ola faces govt backlash in Karnataka over convenience fee for Prime Play cabs

By Entrackr calender  20-May-2019

Ola faces govt backlash in Karnataka over convenience fee for Prime Play cabs

Karnataka government has always showcased its practice of closely scrutinizing the operations of the cab aggregator startups in the city, especially Ola.
At several points in past three months Ola had faced the government’s backlash regarding the issue of bike taxis. Not only was the Transport department unhappy with the company’s relaunch of the services without taking permission from the government, it also fined the company for using white plated personal bikes as taxis.
This had resulted in a six month ban for Ola which had been revoked in the next couple of days after a flak from the citizens around commuting problems following the ban and a plea from Ola outlining that rivals were also operating similarly and no personal bikes were being used. The end result was a need for a solid policy guidelining the functionality of these companies.
Just like the whole ban fiasco didn’t really make much sense, the newest concern of Karnataka government with Ola also shows a lack of understanding between the two bodies. This time the government has written to Ola about how it is violating the law by charging Ola Prime Play customers with a convenience fee for using the value added service of Ola Play.

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