Uber launches autorickshaw service in Indian capital
Play
NEW DELHI (Reuters) - Online cab-hailing companyUber will allow passengers in the Indian capital to bookautorickshaws, the cheaper three-wheeled taxis, as part of adrive to boost its presence and compete with a local rival inone of its key markets.
Under the uberAUTO service, the company will not charge afee for booking autorickshaws, users will be allowed to pay forthe journey in cash, and the pricing will follow government farerules, Uber said in a statement on Thursday.
The launch of the service in New Delhi marks a shift fromthe company's global business model. So far, Uber's mobileapplication that connects riders with taxis in cities around theworld has charged customers through credit cards or otherelectronic payment means, but not in cash.
The launch in Uber's largest market outside the UnitedStates comes against the backdrop of stiff competition withIndia's biggest online cab-hailing company Ola, which alreadylets customers hail autorickshaws.
"There were a lot of people who were not able to use an Uberbecause cash payment was not allowed," Gagan Bhatia, generalmanager for Uber in New Delhi, told Reuters. "There is hugepotential in this segment."
The launch comes at a time when Uber is battling regulatoryuncertainty over how it will continue to operate in New Delhi.
Uber was banned in the city following allegations of rapeagainst one of its drivers in December, but has found supportfrom India's transport ministry. (Reporting by Aditya Kalra; Editing by Sumeet Chatterjee andMark Potter)
