Karnataka state transport department has asked ride-hailing majors Ola and Uber to withdraw their ride-pooling services with immediate effect.
As per transport official, the above-mentioned services violates licence rule.
It violates the licence condition of cab aggregators who are permitted only to pick a passenger at a particular point and drop them. They do not have permission to pick passengers at different points, said VP Ikkeri, Karnataka transport commissioner to ET.
He further said that till the state government formalizes rules, the ride-sharing services will be illegal.
Ikkeri in a strong word said ride-hailing firms who voilates this rule will face action.
The directive in this regard was given orally while discussing the grievances of drivers and cab owners regarding fares.
Ola and Uber have been offering ride-pooling services since last four years.
Ride-pooling service primarily lets a cab to pick up and drop multiple passengers to different destinations. The services are popular among passengers for being economical.
The service faced resistance from drivers, who complained that it made only lose them time without earning anything from it. Soon after the order, drivers celebrated the move by the state transport department.
Both the firms have not reacted to the development yet.
Earlier this month, the transport department of Karnataka had sent notice to ride-hailing giants flouting fair norms in the state.
The transport officials alleged that both cab aggregators have been unlawfully charging time-based fare from the customers.