In an instant decision making, Uber Technologies, world’s leading carpooling service provider, opted out of Motor Bike Taxi services in Bengaluru. The respective Taxi hailing company continued to provide access through UberMoto app amid government restrictions on two-wheeler taxis. Its’ counterpart Ola Bikes took off the services immediately after an initial warning in March. Uber had been violating rules and regulations under Motor Vehicle Act from past two months. Finally, it stepped down after many official notices.
A few months back when the respective conglomerate took an initiative to provide service of two wheeler taxis, Karnataka government instantly objected revealing that the city already prevailed car pooling and quite some personal two wheeler. Adding to more of it would increase the pollution level and make roads jam packed at peak hours unnecessarily. Ola took to terms and withdrew its Bike services, but Uber moved forward with the business. Later on around 100 motorbikesseized by State Transport department but in vain as in few areas it continued providing services.
According to Jt. Commissioner of State Transport, L Narendra Holkar,The department is in consultation with the legal department and also the state government to find a solution for this. We will soon come out with an alternative. With the existing rules, two-wheeler ride-sharing service is illegal and we have been seizing vehicles and imposing fines accordingly.
Although hailing of two wheeler taxi generated lot of employment especially to those individuals who possessed two wheeler. It became an excellent source of income in few months. The drivers who joined hands with Uber revealed that the company paid all the fines for violating rules along with paying satisfactory salary. For example, UberMoto paid Rs. 100 per hour on a daily basis i.e. Rs. 500 for 5 hours, etc. Most of the time it would continue to 7 hours minimum. The shifts too varied in morning and night or as preferable. Apart from, exceptional charges, incentives, it also gave 2,000 INR weekly after the completion of 40 rides. The customer’s payment after each ride was excluded from the perks thus making drivers earn a lot of money.
The country’s cheap and best taxi service provider Uber has an intense competition with Ola following a neckline difference in share markets. The car pooling industry in India is at the boom. It governs half of the stock market contributing in GDP too. Economists have shared thoughts that economy share of the particular sector has risen by 139.4% in 2016 in comparison to 2012. Currently, it is growing in a rapid manner having estimated worth of 115 billion USD.
The tiff between both the companies resulted in the closure of two wheeler taxi services. After such hard measures taken by Karnataka government, Mumbai RTO disbarred another bike taxi service company Hey Taxi to launch in the state.