Karnataka's cab aggregator policy may find takers in other states, says state transport minister

The rules mandate taxi aggregators to secure licences, while cars should have digital meters, panic buttons and GPS device to operate in the state

Karnataka’s new licensing norms that cap taxi fares charged by aggregators such as Uber and Ola could be adopted by several other states, according to Ramalinga Reddy, the state’s transport minister.

Queries by other states that are keen to adopt Karnataka’s way came at the national meet of transport ministers at Dharamsala early this month. They sought details on the On-Demand Transportation Technology Rules that took effect in April.

The rules mandate taxi aggregators to secure licences, while cars should have digital meters, panic buttons and a GPS device to operate in the state. “We (transport ministers) are going to implement some rules and regulations throughout India. This will take another four-five months,” Reddy told Business Standard.

The development comes as aggregators such as Ola, this country's largest operator and Uber, its global rival, begin complying with the new rules.

Only 100 cars for Ola

Meanwhile, India’s largest taxi aggregator Ola has been granted a license to operate only 100 cars in Bengaluru, its second largest market after Delhi-NCR, where it is estimated to operate over 20,000 cars on its platform.

According to transport officials Ola’s application came through on Monday. The company outfitted 100 cars with digital meters, panic buttons and GPS units as per the requirements of the rules.

“They (Ola) have been granted license only for 100 vehicles. The Regional Transport Office in Koramangala verified that all parameters have been followed by them,” said transport commissioner Ramegowda.