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 The case has caused uproar in India after it emerged that the
suspect had previously been charged for rape but had obtained a
character reference signed by a police officer that appeared to have
been forged.
It has also revealed a total failure to regulate the booming market
for online taxi services in India. The Delhi transport department
has been slow to respond and, according to reports, sent its order
banning Uber by fax.
In its ruling, published in a national newspaper, the department
stated that only six registered radio taxi companies would now be
allowed to operate in New Delhi.
"We have banned Uber. Another public notice will be issued tomorrow
for banning all non-registered cab service providers. It's almost
done," said Kuldeep Singh Gangar, spokesman of the Delhi transport
department.
Uber was blacklisted in New Delhi on Monday after police said it had
failed to run background checks on the driver, who was arrested
three years ago in a similar case but later acquitted.
The arrested driver, Shiv Kumar Yadav, appeared in court on Monday
and was remanded in custody for three days. Yadav had obtained a
reference from the Delhi Police, but police spokesman Rajan Bhagat
told Reuters the certificate "seems to be fake."
The fast-growing ride-hailing service Uber was valued at $40 billion
last week after its latest funding round ahead of an expected
initial public offering. In India, the company operates in 11
cities.
India's central bank had earlier rapped Uber for violating the
country's credit card payment system by using a so-called one-step
authorization process while the regulator requires a two-step
procedure. Uber later complied, calling the requirement "unnecessary
and burdensome".
The U.S. company has also been dogged by controversy surrounding its
aggressive approach to local governments and traditional taxi
services.
On Monday, the U.S. West Coast city of Portland sued Uber to bar it
from operating in the city. The company started operating in
Portland on Friday without consent from authorities or any agreement
over how it would be regulated.
India's Home Minister Rajnath Singh may issue a statement to
parliament calling on India's federal states and union territories
to ban Uber, the Indian Express newspaper reported.
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UBER STILL ON
A representative for Uber said the company had not been officially
notified of any ban in New Delhi and would issue a statement later
on Tuesday. It was still possible to hail an Uber taxi in Delhi
using the company's smartphone application.
Uber taxi driver Satish Kumar, who has been associated with the
company for 11 months, told Reuters he works for another travel
company that is enrolled with Uber. He was unaware of the ban.
"We will only consider a ban once our app stops working," said
Kumar, whose company pays 20 percent of the fare to Uber.
"If it is banned, we will suffer losses. It is up to the authorities
to do the checks. Why blame the company and make others suffer?" he
asked.
Before joining Uber, Kumar said he was trained for two days on basic
etiquette and using the mobile app. He only submitted a copy of his
driving license and identity card to the company. He was not
interviewed.
Uber taxis were also violating norms by plying within the city
despite having an all-India tourist permit that mandates only
inter-state travel, a government official said.
"They have not made any efforts to get themselves registered. They
have just tried to use the loopholes in the system to run a service
and gain commercially," said a Delhi transport department official
on condition of anonymity.
The state department had also received several complaints from other
operators about how unregistered providers like Uber were violating
norms and hurting their profits.
(Reporting by Aditya Kalra, Andrew MacAskill, Malini Menon; Writing
by Aditya Kalra; Editing by Douglas Busvine)
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