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Under the uberAUTO service, the company will not
charge a fee for booking autorickshaws, users will be allowed to
pay for the journey in cash, and the pricing will follow
government fare rules, Uber said in a statement on Thursday.
The launch of the service in New Delhi marks a shift from the
company's global business model. So far, Uber's mobile
application that connects riders with taxis in cities around the
world has charged customers through credit cards or other
electronic payment means, but not in cash.
The launch in Uber's largest market outside the United States
comes against the backdrop of stiff competition with India's
biggest online cab-hailing company Ola, which already lets
customers hail autorickshaws.
"There were a lot of people who were not able to use an Uber
because cash payment was not allowed," Gagan Bhatia, general
manager for Uber in New Delhi, told Reuters. "There is huge
potential in this segment."
The launch comes at a time when Uber is battling regulatory
uncertainty over how it will continue to operate in New Delhi.
Uber was banned in the city following allegations of rape
against one of its drivers in December, but has found support
from India's transport ministry.
(Reporting by Aditya Kalra; Editing by Sumeet Chatterjee and
Mark Potter)
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