After local authorities in New Delhi, India, began looking into the case of an alleged rape of a passenger by an Uber driver, the government has banned Uber and similar Web-based taxi services that aren’t recognized by the country’s transport department in the city, reports Reuters.
The Delhi state government currently only has provisions for radio taxi services and not Web- and mobile-based cab services. Radio taxi companies need to register and secure a permit from the transport department to operate in the city of New Delhi; Uber, being a cab aggregator that connects a network of licensed drivers who own cars for their service, does not hold such any such permit.
The Times of India reports that over 20 cab services including Uber and close competitor Ola, might have to cease operations in New Delhi owing to the ban. Only six other cab services in the city like Easy Cab and Meru Cab hold valid permits and can continue to offer rides in town.
The transport department said that it will work on framing guidelines and permits for online cab services now.
In addition, the city police have filed a case against Uber for negligent conduct, as the company had failed to conduct a thorough background check on its suspected driver. We’ve reached out to Uber for comments and will share updates as soon as we hear back.