Uber resumes service in Delhi

Premium taxi service Uber has resumed operations in Delhi after a period of more than a month. The Government had banned all taxi-hailing apps in Delhi following the alleged rape of a lady passenger by the driver of an Uber cab.

Uber had been arguing that it was just a technology provider and not a cab operator. However, pressure from Delhi transport authorities has forced the company to apply for a licence to operate as a radio taxi service.

Despite the ban, Uber's competitors continued operating in the national capital. Had Uber stayed off the roads any longer, its future prospects could be threatened. This was another reason for the company to apply for the licence.

Provided all the paperwork is in place, the company will get the Government's approval and a letter of intent in the next week. Uber will then have to submit a bank guarantee of Rs. 15 lakh for 5 years, following which, it will get a licence.

The radio taxi scheme has been modified to permit web-based aggregators to operate cabs through a web portal or call centres if they agreed to own their cars. Uber's competitors such as TaxiForSure and OLA have already applied for radio taxi licences. 

According to the modified radio taxi scheme, a licencee is required to have a minimum fleet of 200 taxis. These may be either owned by the licencee or through an agreement with individual permit-holders. A service can be started with a minimum fleet of 50 radio taxis.

Source: Economic Times