RTO plans action against app-based cab operators in Indore

The app-based cab services running in Indore, including Ola and Uber, are in trouble as the Indore regional transport office (RTO) has found their reply to recent show cause notices unsatisfactory.

The app-based cab services running in Indore, including Ola and Uber, are in trouble as the Indore regional transport office (RTO) has found their reply to recent show cause notices unsatisfactory.

The RTO had in notice issued last month demanded to know why cabs should not be banned in the city as they are running without city permit. (Representational picture)

The RTO had in notice issued last month demanded to know why cabs should not be banned in the city as they are running without city permit.

While the companies had submitted replies that they have all-India permit, the RTO has not found their replies satisfactory. Indore regional transport officer MP Singh said that all-India permit means a tourist permit for plying taxis from one city to another and not within a city.

The app-based cab aggregators get into agreement with private vehicle owners who run taxis. One of the objections raised by the RTO is that cars that have been attached have not been taken on lease by the company. “This arrangement has no provision in Motor Vehicles Act, and according to the rules a lease agreement is required,” Singh said.

While the companies had sent a list of their rules to the transport department, the RTO has found certain anomalies.

Neither the rules for fixing fare nor the status of the car owner are clear, as he or she can drive the cab for any one or both cab aggregators. The RTO is now planning to issue fresh notices after taking their replies into account.

Last year, the road transport officials seized 16 cabs for running without official permission. The cabs did not have GPS systems to check their location, but subsequently after the action, all app-based cabs running in the city have installed GPS systems.

Ola launched operations in Indore in 2014 while Uber entered Indore a year later. Both the firms have more than 500 cabs each in the city.