Bangalore-based shuttle bus service, ZipGo has again run into trouble with the government. It has suspended its services in the city after the state transport department alleged them of violating rules and operating without permits.

In December last year, the company had to suspend its operations for the same reason.

Founded in 2015 by Jitender Sharma and Pritesh Gupta, ZipGo, offers on-demand AC bus service and is backed by Orios Venture Partners. The startup functions in the same space as BMTC and entered as a competitor to the state-run entity.

Ramegowda, Karnataka’s commissioner for transport and road safety said,

“They are operating illegally. They have to obtain a permit, a stage carriage permit, but they won’t get it here because it’s the same area as the BMTC. Because of this they can’t operate.”

It was recently that Zipgo launched its shuttle services from 14 points across the city to Kempegowda International Airport for INR 149, whereas BMTC offers the same service for over INR 170.

In December, Shuttl and Ola’s Shuttle services had 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.

Ola had started its shuttle service in two areas, Bangalore and Gurgaon (near Delhi), with 500 shuttles covering 100 routes.

There are smaller startups including Cityflo, rBus, Shuttl and ZipGo which operates in this space.