Uber Embraces Government Approved Model

On Thursday of last week, Uber resumed operations in New Delhi under a new operating model. In December, per the request of Delhi’s transportation department, we had taken the step of shutting down operations. They had ordered all web-based applications be shut down pending grant of a radio-taxi license, and Uber Delhi accordingly complied with the request.

Today, each of the major transportation apps including Uber have taxi license applications in process. Each of the major transportation apps including Uber are also currently running in Delhi.

We are committed to obtaining this license but also wanted to clarify Uber’s current operating model. Since our re-launch we have adopted Pooch-O’s model, one already approved and endorsed by the transportation department. This allows Uber to legally operate, enabling safe, reliable rides to an underserved public while working out the details of a long-term solution with the government.

The details of Pooch-O’s model are as below :

  • It acts as a marketplace between rider and driver, allowing riders easy access to the closest transport providers, and allowing drivers a way to more paying customers.
  • It is an app that connects rider to only commercially licensed drivers
  • It is a not-for-profit platform that takes no commissions or fees for its marketplace services.
  • It requires that all drivers have a PSV Badge issued by the Delhi government

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. Additionally, we will take responsibility for providing a safe transportation platform and continue to innovate in process and product to make Uber safer in Delhi, across India and around the world.

For more information on Pooch-O and its model, please take a look at their app or this article in the Times of India.

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