Ola to tap inter-city cab market

Cab aggregator Ola has been issued a notice by the Karnataka Transport Department for flouting the rules after obtaining the license claim industry sources. The notice is said to have been issued in early July, and after the cab aggregator applied for and obtained a license following a legal battle in the Karnataka High Court. The notice is claimed to point at Ola having introduced surge pricing during peak hours in violation of the new rules for license. It also delves upo the return of shuttle services with (12+1 seat) maxi cabs in Bangalore. As per the new regulations, industry sources claim that only the Bengaluru Metropolitan Transport Corporation (BMTC) can ferry intra-city commuters. While Ola’s reply to the notice could not be ascertained, Uber, having applied for the license is yet to get it. Uber, as per Karnataka High Court’s order has suspended surge pricing in Karnataka.

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