Uber gets Karnataka aggregator licence; only player cleared for cabs, autos
Uber has been granted renewal of its transport aggregator license by the Karnataka State Transport Authority (KSTA), making it the only licensed player in the auto and rickshaw space in the state.
The company’s license was renewed for five years from December 31, 2021 to December 30, 2026 under the Karnataka Optional Transport Technology Aggregators Rules, 2016. While the revamp includes both car and autorickshaw services, cycle taxis remain in a separate regulatory lane. A court approved the operation but the state government is yet to officially respond.
An Uber spokesperson said: “We are pleased to receive our ride aggregator license in the state of Karnataka, one of Uber’s key markets in India. This license reflects our commitment to serving passengers and drivers across the state.”
The latest development puts an end to the long-standing regulatory uncertainty for app-based cab aggregators in the state. Ola’s license expired in June 2021 and Uber’s license expired in December the same year. The transportation department said the rules were not followed, saying both companies applied for renewal after their licenses expired, rather than 60 days before, and objected to certain operational requirements, including the establishment of a toll-free hotline. Companies resisted, arguing that some rules were outdated due to advances in technology.
After Ola and Uber claimed that they were technology platforms and not transport operators, the companies were only able to continue operating due to a court order preventing authorities from taking “any coercive action”. Rapido, which had applied for a separate license to operate autorickshaws, was also caught up in the regulatory backlog.
Terms and conditions
Uber’s renewed license formalizes its compliance with Karnataka regulations. This law, issued under Section 93 of the Motor Vehicles Act, allows an app-based platform to act as a digital intermediary for taxi services.
It comes with certain conditions such as minimum fleet thresholds, a control room in Bengaluru, GPS and panic button requirements, police verification of drivers, compliance with government fixed charges and complaint-redressal mechanism, said Rohit Jain, managing partner of law firm Singhania & Co. “It’s hard to understand,” he added.
