Pune: Ola and Uber Rush to Arbitration Over Denied License Applications

Ola and Uber, two prominent online passenger transport companies, are facing a challenge as their license applications were denied by the Regional Transport Authority. Led by Pune district Collector Dr. Suhas Diwase, the authority rejected the applications, prompting both companies to seek recourse through arbitration.

The decision to deny permission to Ola and Uber was based on the absence of a state government motor vehicle aggregation policy. Both companies had applied to the Regional Transport Office (RTO) under the Central Government’s Motor Vehicle Aggregation Policy. However, their applications were turned down during a meeting chaired by Suhas Diwase.

Challenging this decision, Ola initially approached the State Transport Appellate Tribunal for arbitration. Subsequently, Uber followed suit, also seeking arbitration against the denial of their license applications. The tribunal is set to hear the applications from both companies on April 22.

One of the contentious issues surrounding this dispute is the Regional Transport Authority’s decision to increase fares for air-conditioned taxis. Despite this adjustment, Ola and Uber have not implemented the fare hike, leading to further friction between the companies and local authorities.

Efforts to resolve the matter through meetings chaired by the District Collector have been unsuccessful, culminating in the rejection of the license applications. Now, the fate of Ola and Uber operations in the region hinges on the upcoming arbitration proceedings, where both companies and RTOs will present their arguments before a final decision is made by the arbitrator.