Uber gets Karnataka aggregator licence; only player cleared for cabs, autos

Uber has been granted a renewal of its transport aggregator licence by the Karnataka State Transport Authority (KSTA), making it the only licensed player in the state for cars and autorickshaws.

The company’s licence has been renewed for five years, from 31 December 2021 to 30 December 2026, under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. While the renewal covers both car and autorickshaw services, bike taxis remain in a separate regulatory lane. A court has approved their operation but the state government is yet to formally respond.

An Uber spokesperson said, “We are pleased to receive our transport aggregator licence in Karnataka, a state that has been one of Uber’s most important markets in India. This licence reflects our continued commitment to serving riders and drivers across the state.”

The latest development ends a prolonged period of regulatory uncertainty for app-based taxi aggregators in the state. Ola's licence expired in June 2021 and Uber's lapsed in December of the same year. The transport department had cited non-compliance with the rules, saying both companies applied for a renewal after their licences had already expired instead of 60 days before expiry, and their objections to certain operational requirements, including setting up a toll-free help line. The companies resisted, arguing several rules had become obsolete because of advances in technology.

The companies were able to continue operating only because of a court order that restrained authorities from taking "any coercive action" after Ola and Uber argued they were technology platforms rather than transport operators. Rapido, which had applied for a separate licence to operate autorickshaws, was also caught up in the regulatory backlog.

Terms and conditions

Uber’s renewed licence formalises its compliance with Karnataka's regulations. Issued under Section 93 of the Motor Vehicles Act, it permits an app-based platform to act as a digital intermediary for taxi services.

It comes with certain conditions such as minimum fleet thresholds, a control room in Bengaluru, GPS and panic-button requirements, police verification of drivers, adherence to government-fixed fares, and a grievance-redressal mechanism, “failing which the authority can suspend or cancel the licence,” said Rohit Jain, managing partner at law firm Singhania & Co. For Uber, the licence formalises compliance and strengthens safety oversight in a market where regulatory clarity has long been elusive, he added.