Online shuttle services Shuttl and Ola Shuttle have suspended their operations in Gurgaon for not having got the correct permits for operating shuttle services, reports YourStory. The report says that the companies do not fall under the ambit of Haryana Contract Carriage Permit Act and hence their services cannot operate there. We’ve written to Ola and Shuttl and will update once we hear from them.

Both the companies have obtained permits under the Stage Contract Act which will allow them to do carry passengers across cities. But they need a permit under the Contract Carriage Act to facilitate intra-city travel. The report adds that 20 shuttle buses have been seized by the transport authority.

In September, Ola added bus shuttle services to its platform in Bangalore and Gurgaon, where the company claimed to have 500 shuttles covering 100 routes. The shuttles, like cabs, are privately owned, but provide 12 to 20 seats and can only be booked if empty seats are available. Shuttl, backed by Sequoia Capital and launched in April 2015, offers economic shuttle services to commuters across 20 routes in Gurgaon and Noida.

ZipGo operations were also hit

Bangalore-based ZipGo’s services were also hit earlier in September and the company had suspended its operations following raids by the Karnataka Transpost department. According to a report by Mint, the Karnataka transport department said there is no provision for ZipGo to operate services that directly compete with the state-run city bus service under the Karnataka Motor Vehicle Rules of 1989. The company was forced to pay a fine for the offence at the time.

The service was in the news again earlier this month as four vehicles were seized by the Karnataka transport department again for violating its permits. Last week, ZipGo was also talking to the transport officials where they sought information of the drivers on their shuttle service.

MediaNama’s take:

Unlike online cab aggregators, the permits for shuttle services is rather clearly defined. If indeed the companies are violating the policies, it should not be difficult for them to apply for and get permits to ply in certain areas. Shuttle services are great for people who do not use a car for daily commute and can help in reducing air pollution as well as traffic.

Image source: Flickr user Shankar S