Uber ban continues as radio taxi licence is rejected; TaxiForSure, Olacabs also in trouble
According to Modified Radio Taxi Scheme (2006), radio taxi licence applicants are required to furnish comprehensive details about the operation of their business. Delhi Transport Department rejected Uber’s application citing lack of mandated details like telephone number, e-mail id and proof of address the company’s registered office in Delhi; certificate / undertaking for parking of radio taxis, and call centre management plans, among others.
The transport department found TaxiForSure’s application also to be incomplete. The company failed to enclose details of drivers & undertaking of induction schedule; Certificate / undertaking for radio taxis’ parking, call centre details and print-out of web portal.
Last week, Uber resumed services claiming that the ban was lifted (although the transport department says otherwise), and announced commission free operation until licence is obtained. Uber charges the driver 20 percent commission in all Indian cities, but the U.S based company stopped collecting their margin and passed it as a benefit to customers (only in Delhi).
The scheme was passed immediately after Delhi police raided Uber’s office in Gurgaon and confiscated their laptops, demanding explanation as to why the firm was operating while ban was on effect.
Transport authorities are not happy with Uber’s procedure of taking money from the customers and then distributing to drivers, even if it is 80 percent or 100 percent.
Uber scrapped commission temporarily to mimic another app named Pooch-O which finds auto-rickshaws for users. Pooch-O is a mobile application developed by DIMTS (Delhi Integrated Multi-Modal Transit System Ltd), which is a joint venture between government of Delhi and IDFC. Unlike any other web based taxi aggregators, Pooch-O does not collect commission. It does not even accept payments; which is the kind of service Delhi Transport Department may be expecting from the aforementioned taxi aggregators. Pooch-O has plans to extend to taxis soon.
Via – Financial Express