Uber Says Won't Take Commission From Delhi Taxis Until Uncertainty Lifts

Advertisement
By Reuters | Updated: 28 January 2015 10:17 IST
Uber, the U.S.-based online taxi-hailing company, will not take any commission from its drivers in New Delhi until uncertainty over how it can operate in the country's capital city is cleared up, it said on Tuesday.

India banned Uber in the city following rape allegations against one of its drivers. But the company restarted services there last week and applied for a radio taxi licence. A transport official said on Friday that Uber remained blacklisted.

Uber said on Tuesday it had adopted a business model similar to a government-approved smartphone app called 'Pooch-O', which connects customers with commercially-licensed auto-rickshaws and does not charge any fee.

Advertisement

"Uber has modified its business model in line with the above framework, and is currently operating without commission or fees until the regulatory ambiguity is resolved," Uber said.

"This allows Uber to legally operate ... while working out the details of a long-term solution with the government."

Advertisement

Officials at New Delhi's transport department were not immediately available to comment.

Uber was taking a commission of 20 percent from its drivers in New Delhi, and started offering additional incentives including a 250-rupee bonus per trip after resuming operations last week.

Advertisement

"Definitely it hurts our business as we are not to going make any money. We will in fact spend money to run Delhi operations for our riders," a senior Uber executive, who did not wish to be identified, told Reuters.

Uber is also fighting bans in France, Spain and South Korea, imposed because some of its drivers were not correctly licensed. It has had to contend with further rape allegations against drivers in Chicago and Boston.

Advertisement

India is Uber's largest market outside the United States by number of cities covered, and the country's radio taxi market is estimated to be worth $6 billion (roughly Rs. 36,888 crores) to $9 billion (roughly Rs. 55,333 crores).

Uber, valued at $40 billion (roughly Rs. 2,45,639 crores) last month, said last week it would introduce additional safety measures including more stringent driver checks and an in-app emergency button.

© Thomson Reuters 2015
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apps, Uber, Uber App, Uber Taxi App
Advertisement

Related Stories

Popular Mobile Brands
  1. Xiaomi Smart Band 11 Active With a 1.47-Inch Screen Debuts: See Price
  2. Poco X8 Power, X8 With 50-Megapixel Camera Debut in India: See Prices
  3. Alienware 15 Arrives on Flipkart: Is This the Ultimate Mid-Range Gaming Powerhouse?
  4. Xiaomi Power Bank 20000mAh 165W to Launch in India On This Day
  5. Samsung Galaxy A27 Review
  6. Tecno Pova 8 Pro 5G Tonino Lamborghini Limited Edition Unveiled
  7. Krafton India Releases New Set of Redeem Codes
  8. Luna Band Goes on Sale Globally: Price in India, Features
  9. These Flagship Oppo Find X10 Series Phones Could Launch Soon in India
  1. IFA 2026: Lenovo Unveiled New IdeaPad, Yoga and ThinkBook Laptops
  2. IFA 2026: Nvidia RTX Spark PCs, Local AI Tools Announced With October Launch Planned
  3. WhatsApp Reportedly Rolling Out Third-Party AI Agent Chats to Android Users
  4. Luna Band Now Available Globally: Check Price in India, Specifications and Features
  5. Pocket Bitcoin Data Breach Exposes Personal and Financial Information of 5,411 Customers
  6. Google Pixel Watch 5 Stephen Curry Special Edition Goes on Sale: Price, Features and More
  7. IFA 2026: Noise Master Buds Open With Sound by Bose Technology Unveiled
  8. Binance Warns of Phishing Scam Targeting Crypto Users With Fake Account Security Alerts
  9. Oppo Find X10 Pro Max, Find X10 India Launch Seems Imminent as Phones Appear on Certification Site
  10. Xiaomi Smart Band 11 Active Launched With Up to 21 Days of Battery Life; Smart Band 11 Price, Features Revealed
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.