The Karnataka government has revoked the suspension of ride-hailing major Ola, two days after it banned the service from operating in the state for six months. A fine of Rs 1500,000 has also been imposed on the company.
In Karnataka, Ola operates in Bengaluru, Mysuru, Mangaluru, Hubballi, Ballari, Belagavi and Kalaburagi.
Ola, run by ANI Technologies Pvt Ltd, was banned after the transport department said that the company violated existing provisions by operating two-wheeler taxis in the capital Bengaluru, one of its biggest markets.
Ola as well as Uber started their pilot of bike taxi services in Bengaluru in 2016. The Bengaluru transport department had then called bike taxis illegal. However, that did not deter Ola to launch bike taxi in other cities. Late last year it started two-wheeler ride hailing service in Agra.
On Friday after its licence was suspended, Ola reached out to the state minister for social justice, Priyank Kharge. Mint reported that the decision to ban Ola was taken by the Karnataka transport department without consulting Karnataka's IT ministry or the government.
On Saturday evening, Kharge tweeted Ola cabs would run their business as usual. “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.”
Ola tweeted on Monday: “We’re glad to inform that the matter regarding licensing in Karnataka is fully resolved. We're committed to working with the Govt. to enhance livelihoods of thousands of driver partners & facilitate mobility needs of millions of people. Appreciate your continued faith & support.”