App based cab service providers Ola and Uber had introduced two-wheeler taxi services Ola Bike and Uber MOTO in Bengaluru to gauge market reception and demand. Despite Ola discontinuing Ola Bike after licensing concerns, Uber MOTO continues to operate in the city. Transport commissioner of Karnataka Rame Gowda raised concern over Uber MOTO saying the company has not acquired requisite license and permits. “Why you (Uber) are not going to RTA and getting permission and the license, without that you are operating,” said Gowda.
Uber on the other had said in a statement that, “In the spirit of collaborating with the government, we had extensive discussions with the relevant authorities over the past few days as we have made some modifications to our ongoing pilot service with a commitment to operate within the existing framework.” But Gowda dismissed the comment and said transport department is seizing Uber MOTO vehicles after booking them from the app.
The service is in pilot stages being offered without any fees and operated at cost. The goal of the project is to understand market dynamics, demand and reception of two-wheeler taxi services. Ola started a similar two-wheeler taxi service called Ola Bike but wrapped it up once permit issues were raised.