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Tug Of War Between BMTC And Zipgo Forces App Based Shuttle Service Provider To Shut Down Its Operations


1 February, 2016, Bangalore: Bangalore Metropolitan Transport Corporation (BMTC) has once again raised questions on the legality of Zipgo (an app based shuttle service) and it has forced the company to suspend its operations in the city. Earlier, Karnataka transport department had raided Zipgo’s office claiming that the company is playing with the transport norms of the state. In its recent move, transport department of the state has forced the company to shut down its operations.

On the other hand, Zipgo’s founders have claimed that the company has been following the transport norms and all its vehicles comply with all the regulations and laws specifically Section 2(7) of the Motor Vehicles Act. It has also claimed that the RTO department doesn’t like any competitors in its business and this is the major reason behind company’s shut down.

Founders had also sent an email to its customers stating “ZipGo needs your help to avoid service disruptions”. Commenting on the working of Zipgo, Ramegowda, Commissioner,  Transport and Road Safety said, “The startup is operating illegally and needs to to obtain a permit, a stage carriage permit but won’t get it here because it’s the same functional area as the BMTC.”

“So, if you feel that ZipGo has made a positive difference in your everyday life, or that the government should promote entrepreneurship, or that the RTO needs to stop its high-handed approach, or that the RTO should engage in constructive dialogues with technology start-ups to find solutions rather than trying to shut down every transportation start-up, you should send a mail,” Zipgo’s email to the customers further stated.

Image-Business Standard



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