Dec 10, 2014

UBER Banned for Delhi Rape Case - A setback for APP Startups

uber banned image

Uber, which was recently valued at $40 billion, launched in New Delhi one year ago as part of a major global expansion. With its GPS-enabled app and customer ratings system for drivers, the service billed itself as a safer transport alternative in a city that has a reputation for being dangerous for women.

Authorities in New Delhi have banned Uber cabs from operating in the Indian capital after reports of a passenger rape.The Delhi state government said Uber, the San Francisco company that allows customers to hail cars using a mobile app, did not have the required permits to operate taxis in the capital region and accused it of “misleading” customers. Police say the company did not conduct an adequate background check on the driver and that his car did not have a GPS tracking system installed, as required by law.

After UBER's incident the car booking app platforms are hardly hit by the people's anger and is a setback for their businesses until the dust is settled. This is a clear example for future startups to design an idea that is compliant with the law of the land else the empires can be shut down in a single day.

How was UBER allowed to operate in India?
Is UBER a Radio taxi service? they claim they are not transport providers but just a platform connecting A to B and therefore they claim to be outside the framework of  India's regulatory laws. Uber collect money from the customer directly through pay channels and now denies to say they are not transport providers after this incident happened.

Rules's that UBER didn't follow
No GPS in the CAR
Car driven by 3 different drivers owned by the alleged rapist.
Driver didn't have mandatory badge
Alleged rapist switched off phone afterwards
Company did not check on Driver or Victim later

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