The future of online passenger transport giants Ola and Uber hangs in the balance as they grapple with the fallout from a recent decision by the Regional Transport Authority (RTA) in Pune. The authority, under the leadership of Collector Dr. Suhas Diwase, has denied license applications submitted by both companies, triggering a legal battle and casting a shadow of uncertainty over their operations.
Licensing Denial and Appeals:
Ola and Uber sought licenses from the RTA under the Central Government’s Motor Vehicle Aggregation Policy, owing to the absence of a specific motor vehicle aggregator policy in Maharashtra. However, the RTA, after a thorough review of the applications on March 11, opted to reject them in a meeting chaired by the collector.
In response, Ola initially contested the decision through arbitration, while Uber filed an appeal, albeit after the deadline. The dispute has now escalated to the Maharashtra State Transport Appellate Tribunal, which is set to convene for a hearing on April 22.
Background of Conflict:
The crux of the conflict between the RTA and the ride-hailing companies revolves around the implementation of revised fares for air-conditioned taxis. The RTA introduced fare adjustments, establishing a new base fare of Rs 37 for the initial one and a half kilometers and Rs 25 for each additional kilometer. However, Ola and Uber have refrained from implementing these revised fares.
Efforts to resolve the issue through multiple meetings between the RTA and the companies proved futile, leading the district collector to take decisive action by rejecting their license applications.
Legal Proceedings and Tribunal Hearing:
With both Ola and Uber challenging the RTA’s decision, the matter now rests with the Maharashtra State Transport Appellate Tribunal. During the upcoming hearing, scheduled for April 22, all involved parties will present their arguments, and the Tribunal will render a final verdict on the contentious issue.
