Though Uber somehow managed to step back into the New Delhi territory, the ride-hailing service is currently carrying out its operations on a no-profit basis, pending approval of a radio taxi license.
Uber marked its return on Indian roads this week by applying for a license under Delhi Government’s freshly passed Radio Taxi Scheme and complying with all of the other legalities. The company has decided to warm itself up and run its services on no-profit model until it receives the license mandatory for it to re-commence its operations in India. Uber visions a great potential on Indian roads and definitely does not want to put a permanent brake to its Indian operations.
Under its previous model, Uber was taking a commission of 20 percent from its drivers in New Delhi. The new model says that the company will not take commission from its driver in any form until it passes all of the legal formalities.
Uber said on Tuesday it had adopted a business model similar to a government-approved smartphone app called ‘Pooch-O’, which connects customers with commercially-licensed auto-rickshaws and does not charge any fee.
Uber wrote in a blogpost-
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.
Under Uber’s current re-commencement of operations, it is only allowing driver-partners who have undergone re-verification of their Police clearance in the last six weeks to get back on the platform. For an additional layer of screening, Uber is also implementing independent background checks on all driver partners, plus vehicle documentation reviews.