Karnataka Government backlashes Ola for charging a convenience fee for Prime Play Cabs

Key Highlights

Government of Karnataka backlashes Ola for charging extra fees for Prime Play service.

Prime Play offers customers a facility to book cabs with zero waiting time by going to Ola zones and also getting the entertainment service.

State government of Karnataka soon to develop certain policies to guideline the operation cab aggregator startups in the city.

Ride-hailing giant Ola has always been back lashed by the Government of Karnataka as it has been very active since past months for scrutinizing the operations of the cab aggregator startups in the city.

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In the previous three months, Ola had faced the government’s backlash regarding the issue of bike taxis. The state transport Department fined the company for using white plated personal bikes as taxis. This has to lead to a ban of services of Ola for 6 months but the services were revoked in few days after a plea from Ola outlining that rivals were also operating similarly and no personal bikes were being used. This issue led the state government to develop certain policies to guideline the operation of these companies. This time the government has written to Ola on how it is violating the law by charging Ola Prime Play customers with a convenience fee for using the value-added service of Ola Play.

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Ola play came into action in 2016 as value added service for entertainment in the cab and it is charging for it but as per Karnataka laws under Motor Vehicles Act and the Karnataka On-demand Transportation Technology Cab Aggregators Rules, value-added services are not chargeable. Prime Play is a unique service by Ola which offers customers a facility to book cabs with zero waiting time by going to Ola zones and also getting the entertainment service. Recently the company is charging a special price for Prime Play service.

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