Karnataka is all set to ban ride-sharing services that app-based taxi-aggregator companies like Uber and Ola provide, since the transport commissioner declared the service is 'illegal' against state laws. The services include Ola Share and Uber Pool.

Source: b'Representational Image | Source: Reuters\xc2\xa0'

According to Karnataka's transport laws, taxis can only pick up a passenger from a location and drop them off at their destination:

"The shared services violate Motor Vehicle Act and the Karnataka On-demand Transportation Technology Aggregators Rules, 2016. The cabs are permitted only to pick and drop the passengers to a particular point," the state's transport commissioner was quoted by Times of India as saying. 

Earlier Karnataka also banned surge pricing in a move to protect consumers from rampant fares. The transport ministry has said it will wait for a meeting with the aggregators before the state starts to charge defaulters. 

Other states such as Maharashtra have however welcomes the move, saying taxi-sharing helps bring down traffic congestion and pollution on the roads. Carpool services are cheaper and are popular with customers too. 

Feature Image Source: Reuters