Ban on ride-sharing is regressive: Karnataka IT minister

Priyank Kharge, the young IT minister of Karnataka, believes that the recent ban on ridesharing services from Uber and Ola by the state transport department were regressive, pointing out that laws often evolve much slower than technology.

Kharge has a tough task of balancing support to his government's move of banning ridesharing while still retaining the confidence of these companies to attract investments into the state.

"We have banned carpooling (ridesharing). It is a regressive step in my personal opinion but it is as per the Motor Vehicles Act of 1988. We need to change. So the policies are changing and whether it is innovation right at the top or the bottom of the pyramid we are going to ensure it is being done," said Kharge at the Make in Karnataka event in Bengaluru on Tuesday.

Last month, the Karnataka transport department banned ridesharing services such as UberPOOL and Ola Share on the grounds of lacking the right permits. The cabs attached to both platforms have a contract carriage permit which doesn't allow them to pick up and drop off passengers while on a trip.

This law, which has been blamed of being archaic, was made to protect the interests of Bangalore's Metropolitan Transport Corporation. However, in today's context when the city is struggling to cope with its traffic, ridesharing is being seen as one of the ways to reduce congestion.

Uber has defended its ridesharing service saying it complies with the laws as each shared trip still creates just one contract, which is the requirement of the Motor Vehicle Act. However, on February 3 after choosing not to suspend their services in the city, both Uber and Ola cabs began getting flagged down by the traffic police and fined.

In response, both companies sought an extension of 15 days to comply with the law from the Karnataka ministry of road transport. The ban on ridesharing will be enforced from February 18, with the authorities asking Uber and Ola to make formal applications to the road transport authority to modify the law before resuming the services.