Ola started this year in a very likely way, got funding from Flipkart Co-founder Sachin Bansal but now facing the big legal issue.

Regional Transport Department issued a two-page notice to ANI Technologies, Ola’s Parent Company. Authority stated that the Ola is illegally operating the bike-taxi services through ‘fake licenses’, also stated the transport department will be suspending Ola’s License for the next six months. According to the department, the app-based services are against the Karnataka Motor Vehicle Act.

Ola official statement in response to notice:

“Ola is a law-abiding company that has always worked with the Government to develop livelihoods, improve mobility, and enable a new technology industry. We are evaluating all options to find an amicable solution wherein hundreds of thousands of driver-partners in the state of Karnataka can continue to work and serve the mobility needs of our citizens.

We have been closely working with the authorities on this topic, responding to queries and making proactive representations to the ministry. Despite other companies continuing to operate illegally, Ola halted our bike taxi experiment weeks ago, instead seeking the state’s cooperation to develop a legal framework for a pilot that will continue to take advantage of emerging opportunities in the mobility economy.
This notification is unfortunate, and we look forward to an opportunity to address these concerns directly with state officials to find a solution for our driver-partners and millions of Ola users in Karnataka.”