Regular consumers of ride-hailing services can anticipate waiting times to be reduced. This will happen if they reside in Karnataka, India. In a decision that might quickly extend the pool of accessible drivers, the transport department of the state has made a decision to introduce a notification permitting users who have a legitimate private LMV (light motor vehicle) driving license to ply taxis, without having the need to get a commercial license.
Since May 2018, taxi aggregators such as Uber and Ola have been inviting individuals with a valid license to join their services and increase their revenue. But many were uncertain, as the department of transport had not taken an apparent position on this. “The Court’s instruction did away with the method of getting a different commercial license to ply taxi. Now anybody can turn into a taxi driver if he has a legitimate driving license,” claimed Naveen Raj Singh, the Transport Commissioner, to the media in an interview.
On a related note, Ola earlier received $2 Billion financial support from a team of sponsors that comprises Tencent Holdings and SoftBank Group, claimed the industry insiders. The funding will assist Ola boost its place against Uber, the US-based rival. The two are busy in a strong battle for control in the market of India and have invested in billions of dollars in discounted rides and driver incentives for users. Various sources, who did not wish to be recognized as the talks are sensitive, claimed that the round is still to be concluded and the figures might add up to almost $2 Billion when it takes place.
A declaration might be made soon, they further added. SoftBank and Ola refused to speak on the issue while Tencent was not available instantly. ANI Technologies, which operates Ola, has previously lifted various rounds of funding.