Ola and Uber Face Uncertain Future After Pune District Collector’s Decision

Pune, 16th April 2024: Online passenger transport companies Ola and Uber have been denied licenses by the Regional Transport Authority (RTA). The authority, headed by Collector Dr Suhas Diwase, rejected the license applications of the companies, prompting them to appeal the decision.

Due to the absence of a Maharashtra State Government’s motor vehicle aggregator policy, Ola and Uber applied for licenses under the Central Government’s Motor Vehicle Aggregation Policy. The RTA reviewed the applications on March 11, ultimately deciding to reject the licenses in a meeting chaired by the collector.

Ola initially challenged the decision before an arbitrator, and Uber also appealed the decision after the deadline. Both companies have now taken their case to the Maharashtra State Transport Appellate Tribunal, where a hearing is scheduled for April 22.

The background involves a conflict between the Regional Transport Authority (RTA) and the ride-hailing companies Ola and Uber over the implementation of revised fares for air-conditioned taxis. The RTA increased the fares, setting a new base fare of Rs 37 for the first one and a half kilometres and Rs 25 for every additional kilometre. However, Ola and Uber have not implemented these fare changes.

The RTA, led by the District Collector, attempted to resolve this issue through several meetings, but no satisfactory outcome was reached. As a result, the district collector decided to reject the license applications of Ola and Uber.

In response, both Ola and Uber appealed the RTA’s decision and approached the Tribunal for arbitration. During the hearing before the Tribunal, both the companies and the RTO will present their arguments, and the Tribunal will make a final decision on the matter.