Uber directed to shut down in Indian state

Leading ride-sharing firms Uber and Ola have been directed to withdraw their ride-sharing services in the Indian state of Karnataka over “illegal” carpooling services.

The transport department of Karnataka, home to ‘India’s Silicon Valley’ city of Bangalore, has given the companies until Thursday to halt the aforementioned services, Mashable reported.

The directive was issued Monday after officials from the state government along with those from Ola and Uber met to discuss the issue.

The transport officials are citing an archaic regulation to prohibit Uber POOL and Ola Share from operating in the state.

“We have explained to them (Ola and Uber) and they have also agreed that what they are doing now is illegal. They will make changes,” said M.K. Aiyappa, the state transport commissioner.

A source at Ola told Mashable India that the company is currently trying to understand the matter, and is exploring different options.

According to Karnataka’s government, which has shown little interest in amending archaic regulations in the past, pool services violate contract carriage permit under which Uber and Ola’s taxis operate. The age-old regulation restricts a cab from pickling up and dropping passengers during the course of a ride on a particular route.

The regulation in question had previously forced cab provider ZipGo to halt its operations in Bangalore in 2015. Last year, the state government had suspended the motor bike services from Uber and Ola citing similar regulations, mere days after the companies had launched its services.