Multinational taxi service Uber, after facing injunction and complete ban in some major cities, is trying hard to persist and evolve on Indian roads. The company today, made it clear as to why doing business in India is such a tedious task.
Uber launched services in India with its standard payment system which directs users to pre-register credit-card details on the Uber application. The fare is then deducted automatically without any signature or PIN verification. This mode of payment is currently not accepted in India, which requires a 2 step authentication for even the smallest of Online transactions.
In order to comply with RBI regulations, Uber tied up with mobile wallet provider Paytm to fulfil the requirements and for their business operations to breath further.
However, noticing a slow shift towards the wallet system, a disgruntled Uber made sure, that the frustration it is experiencing doing business in India, is known to the Indian public. In a blog post Uber said-
While this requirement is intended to provide more security for consumers, it is an antiquated solution that is cumbersome for consumers and stifling for businesses across India.
While this system is meant to provide added security, it is still an outdated, and as Uber mentioned, a “one-of-a-kind” system. This seriously dents efforts of various foreign brands, who wish to provide a more modern purchasing environment to Indian customers.
The company also unhappily notes that the rule applies to all transactions, “no matter how small the amount,” pointing out that even a short cab ride in the country can’t be as quick and efficient as Uber wants them to be.
With no other alternate approved payment system existing, Uber had no option other than to comply with the RBI rules and has demanded an additional 45 days grace period to allow a smooth transition of its users into the new system.
Today, Uber has complied with the RBI August 22, 2014 circular requiring every credit card transaction made with an Indian credit card to include two-factor authentication. We have engaged in constructive discussions with the RBI and are committed to working with the Indian government to advance regulations that support innovation and job creation.
Citing the business friendly image of the Narendra Modi government, Uber said that it is eager to assist Indian government in creating policies that encourage economic growth, spur foreign direct investment and facilitate job creation.
Well, Mr. Modi is definitely listening to Uber, and more so, because Uber so rightly posted its blog post from Ahmedabad. Well thought !