The Kerala Motor Vehicles Department (MVD) is preparing to take strict action against ride-hailing giants Uber and Ola for operating in the state without official approval. Transport Commissioner Nagaraju Chakilam confirmed that the department has sought legal guidance and plans to issue show-cause notices to both companies.
Low compliance despite new policy
Kerala introduced an online taxi aggregator policy in 2024, but most major operators have not complied. Only one company has applied for approval, and that is for bike taxi services. Even that application is pending because the required documents have not been fully submitted.
Policy requirements for legal operations
The state policy mandates that authorised online taxi aggregators must establish registered offices and call centres in Kerala to operate legally. An MVD inquiry found that none of the major operators, including Uber and Ola, have set up approved offices or centres in the state.
Transport Minister labels operations illegal
Transport Minister K B Ganesh Kumar stated that Uber and Ola are “functioning illegally” since they lack permission from the State Transport Authority (STA). He clarified that online taxis can only operate legally once they receive STA approval.
The minister also noted that the policy aligns with central regulations and follows a court directive. He added that the Centre recently revised licence fees for online taxi companies and warned that vehicles operating without approval could be seized.
