After Cab Companies, Shuttle Operators in Trouble with the Government

It has been almost an year since multiple state governments had put a restriction on the operations of tech led cab aggregators over transportation regulatory issues, that the history is repeating again. This time it’s the app led Shuttle booking companies that have run into trouble.


As per a report by YourStory, Shuttl and Ola’s Shuttle services have been suspended in Gurgaon. According to the Regional Transport Authority in Gurgaon, these services have been stopped in Gurgaon as they don’t fall in the ambit of Haryana Contract Carriage Permit Act 1988, 1993, 2001, 2004, and 2013. This news comes after Zipgo’s suspension of operations in Bangalore, over allegedly violating rules and operating without permits.

Also Read: Can These Bus Aggregation Startups Become Bigger than Cab Hailing Apps in India?

Shuttl started its operations in April 2015 in Gurgaon and Noida, while Ola started its own shuttle services in September 2015. But, as per Gurgaon RTA, there is no provision for both the companies to operate services that directly compete with the state-run city bus service and Resident Welfare Association (RWA) buses.

“Both Ola and Shuttl have got license to operate under the Stage Contract Act which is valid for intercity travel (without multiple stops in city limits), however they can ply in the city limits (intra-city) only under Contract Carriage Act. This is illegal and we have started penalising them over the last one week,” said Bharat Bhushan, Assistant Secretary at the RTA.

Other technology firms operating shuttles in Indian metros include Cityflo, rBus among others. These services have come as a respite to the professionals working in metros and requiring a convenient yet affordable mode of travel. Hopefully this time the discrepancies would be resolved soon, and the companies would get back on track.

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