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Updated: Delhi Transport Dept rejects Uber, Ola & TaxiForSure’s license applications

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Update: Delhi Transport Department has found certain deficiencies in the license applications of Uber, Ola, TaxiForSure and NTL Call Cabs, as per the recently amended Radio Taxi regulations, and rejected their applications in the current form, reports Business Standard. Apparently, these companies had been notified about this development on January 24. It’s expected to take about 10 days for the companies to complete the applications as per the new regulations, after which the transport department will reconsider them. The report mentions that TaxiForSure’s application had the most deficiencies, followed by Uber and Ola had only information missing from its application.

Earlier (January 28): Uber stops taking driver commissions in Delhi until license approval

Cab aggregator Uber has modified its business model to temporarily adopt a no-commission model since its re-launch in Delhi last week. Citing the example of DIMTS’s PoochO which has a similar model and had earlier been approved by the Delhi transport department, the company said that it will continue with this model until “the regulatory ambiguity is resolved”.

A unnamed Delhi transport official however told HuffingtonPost India that this move doesn’t make Uber legal and the ban on Uber will continue in the city. He also added that they will continue to impound Uber cabs who continue to operate in the city. Interestingly, it’s worth noting that competitors Ola and TaxiForSure are also accepting cab bookings in the city and have been operating for the past month or so, unlike Uber which had suspended its Delhi operations for about a month.

Does PoochO model work for taxis?

Uber says that it adopted PoochO’s model, since it allows them to “legally operate while working out the details of a long-term solution with the government”, however what’s worth noting is that PoochO currently aggregates only autos, although the app screenshots suggest that PoochO plans to add taxis in the future.

Last week, TaxiForSure co-founder and CEO Raghunandan had said during TaxiForSure’s Auto rickshaw launch that unlike taxis, providing an on-demand auto service doesn’t require any license as of now, which they’ve checked with the transport department. We are not sure if these rules are limited to Karnataka or applies to Delhi as well.

Last month, Delhi Transport Department had brought Uber and other online cab aggregators under Radio taxi license by amending its Radio taxi regulations. This was after the Delhi government had banned all unlicensed taxi services like Uber, Ola & TaxiForSure and Uber for “misleading consumers” by plying taxis with All India permits which is not allowed while offering point-to-point travel services in the city.

Also Read:

What’s being said about the Uber case; Uber, TaxiForSure & Carzonrent banned in Karnataka

On the responsibility, accountability and liability of platforms, marketplaces and aggregators

(With inputs from Vikas SN)

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