Two days after Ola and Uber launched on demand rideshare services in Bengaluru the government of Karnataka has said that they are illegal and told the citizens not to use those particular services.
A statement released by the transport department said that the two companies had not obtained permit or licence to operate app booked bike taxi services. The bike taxis are illegal and are not entitled for any insurance cover, The Times Of India mentioned in their report.
Several bike taxis of Ola and Uber were seized on Friday for not carrying the required permit since according to the Motor Vehicle Act 1988 that was enforced in Karnataka, a two wheeler is supposed to be a private transport, Deccan Herald mentioned in their report.
The report further mentioned that the bikes had to be converted into transport vehicles, while they were being run as non-transport vehicles. There is a separate licence and permit for transport vehicles which the riders and the company had not obtained from the Transport department.
Ola and Uber vehicles are supposed to get licensed for commercial use.
The Times Of India report said, that Ola Bike Taxi was only a pilot service and there were no regulations to follow in the state on this type of service. No comments from Uber yet.