Ola back on the roads in Bengaluru as Karnataka govt lifts ban

Barely a day after the Regional Transport Office banned cab hailing firm Ola in Bengaluru, the government has lifted the ban saying there was an urgent need for policies to catch up with technology.

"Olacabs will run their business as usual from today. However there is an urgent need for policies to catch-up with new technologies and also industries too should work closely with the government to help evolve policies for innovations," Priyank Kharge, Minister of Social Welfare Development, Government of Karnataka said in a tweet on March 24.

. @Olacabs will run their business as usual from today. However there is an urgent need for policies to catch-up with new technologies & also industries too should work closer with Govt to help evolve policies for innovations.

— Priyank Kharge (@PriyankKharge) March 24, 2019

While the company didn't immediately respond, an existing investor in the company Matrix Partners welcomed the development.

"This speed of resolution is much appreciated and augurs well for the new India. Great to see younger ministers shedding the ways of the older ones and promoting speed and innovation," Avnish Bajaj, managing director of Matrix Partners Tweeted.

Ola was banned from running operations in Bengaluru for six months following a notification from the Regional Transport Office (RTO) for violating license rules.

The company was running bike taxis in the city that was reportedly illegal given the lack of a policy framework.

However, Ola had claimed that it had halted operations of its bike taxis "weeks ago".

The ban was a big blow to the Softbank-funded company that claims to have over 1.3 million driver partners on its platform across the country.

Although it doesn't give a city-wise breakup, Bengaluru is expected to be one of its top markets.

Founded in 2011 by Bhavish Aggarwal and Ankit Bhati, Ola integrates transportation for customers and cab drivers onto a mobile technology platform.