Karnataka open for talks with Ola to avoid ban and allowing Uber an advantage
6 years ago

Karnataka open for talks with Ola to avoid ban and allowing Uber an advantage

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Karnataka issued a notice to suspend Ola’s license for six months for violating government rules. Karnataka kept the door open on Saturday to talks with local ride-hailing service Ola to avoid a ban that could help rival Uber build market share. Karnataka earlier this week issued a notice to suspend Ola’s license for six months for violating government rules by running motorcycle taxis which are not allowed for safety reasons. “It’s a temporary suspension and if they give us a satisfactory response, then we won’t need to implement the ban,” Ikkeri said, adding that Ola would face financial penalties. “Assuming the top three markets contribute to roughly 35-40 percent of Ola’s revenues, if the ban is upheld, we could be looking at a 5-10 percent revenue hit to the company.” On Friday, the company said it was evaluating all options to find an “amicable solution” and was working closely with the authorities.

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