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India in December ordered all unregistered
web-based taxi companies to halt operations until they obtain an
operating license after a driver contracted with Uber was
accused of rape.
The ban, however, has largely been ineffective and both Ola,
backed by Japan's SoftBank Corp, and Uber have continued to
operate in Delhi while their license applications are pending.
The Delhi authorities told Uber and Ola to stop operating if
they want their license applications to be processed. Now, the
city believes blocking the apps is the only way to enforce the
ban, a Delhi government official said, declining to be named as
he was not authorized to speak to the media.
A spokesman for Uber declined to comment, while Ola did not
respond to a request for comment. Officials at the federal
information technology ministry were also not immediately
available for comment.
Online taxi companies see a lot of potential in India, a market
Ola estimates to be worth between $8 billion and $10 billion.
The India ban is the latest in a slew of global problems facing
Uber, which has come under scrutiny for alleged violations,
including using unlicensed drivers.
(Reporting by Aditya Kalra; Editing by Malini Menon and Miral
Fahmy)
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