Ola and Uber seek aggregator licences as Karnataka bans surge pricing

Karnataka government has recently launched a policy that requires cab aggregators to comply with the notified fare structure, banning surge pricing. This is why, Uber and Ola, the mobile app-based ride-hailing biggies, have applied to the Bengaluru Transport Department so that they can get a licence to do business as aggregators.

Amongst the eight firms operating as app-based ride-hailing services under the radio taxi scheme licence, the transport department has only been approached by Uber and Ola. "I have asked the Transport Department to process the applications quickly and issue the licences at the earliest," Principal Secretary (Transport) EV Ramana Reddy told ET.

As per the new regulations, a firm requires to have at least 100 cabs under its fold, either owned or via tie-ups, before they are eligible to seek an aggregator licence.

However, the transport department has said that the requests could not be processed, citing incomplete applications.

"Their applications were not accompanied by security deposit and other requirements such as proof of minimum fleet of cabs. So we have advised them to comply with these," HG Kumar, Additional Commissioner for Transport, told ET.

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