Issues Discussed. Uber Ola Controversy
What is UBER? How does it work?
For starters we need to understand that Uber is not like any other Taxi Service in India. They are rather a technology company connecting drivers and customers. They do not own any vehicles of their own.
In the latest round of fund-raising in which Uber raised $1.2 billion at a valuation estimated at $40 billion, a big chunk of the money was said to be earmarked for India for adding drivers on its network and luring customers with cheap rides.
As the most highly valued US technology startup whose valuation famously more than doubled in just six months to $40 billion battled its worst crisis in India and a global PR disaster, authorities too were left red-faced.
Uber is credited as a disruptive force to the old order of private transportation and it has been the darling of various investors. By merely aggregating cabs and not actually owning them it has enabled the individual cabbie to make more money while lowering the cost for the end consumer. What Uber charges as a fee is a fraction of what traditional taxi companies charge because of the lack of overheads. It isnt an award winning innovation, but a win win at both ends.
What did Uber do?
To start with, some time back, RBI had highlighted objections over the way they were receiving their charges from the user. Once you register your credit card with UBER, from the next time, automatic deductions were possible. RBI thus asked UBER to have the standard two-step verification for the payments.
But the biggest blow came when one of their contracted driver raped a woman traveller and was later found to be a serial offender. For the accused driver, it was alleged that Uber had submitted a forged Character certificate.The lapses in character verification were then revealed and the Delhi govt. banned the services of Uber in the city.It is naive to suggest that Uber does not have any responsibility if a driver presents a fake certificate, license or permit. Anything can be forged in India and that is a sad reality. If you want to do business here, you do need a reality check.
But it is not just this incident that holds Uber guilty. Only All India Permit vehicles have exemption from clean fuel not the city taxis. Uber did not seek any permission from Delhi Transport department prior to starting services.
The Uber taxi in which the alleged rape took place did not have a GPS installed on it. In lieu of this, the Delhi government recently ordered all taxi operators plying in the national capital to install GPS in their vehicles. The directive will be enforced on all types of taxis: radio taxis as well as black-and-yellow cabs, according to a PTI report. In case they fail to comply, they won't be issued fitness certificate by the government, said the report.
The company has been found violating on a host of factors including lack of a registered office, permits and evasion of service tax. Every credit card transaction from a trip by the customer results in money going out of India to Uber’s account in the US. Part of it then comes back to its drivers as their pay. As a service provider, it is liable to pay tax but it did not.
Living up to the Brand Name!
The customers who opt for a Uber do so because it is cheaper than an ordinary radio cab while being perceived as a slick sophisticated service. They should not feel vulnerable like they do in a local ‘kali-peeli’ taxi or a three wheeler. It is Uber they are boarding and not the taxi of a random driver whose antecedents have not been checked.
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What is UBER? How does it work?
For starters we need to understand that Uber is not like any other Taxi Service in India. They are rather a technology company connecting drivers and customers. They do not own any vehicles of their own.
In the latest round of fund-raising in which Uber raised $1.2 billion at a valuation estimated at $40 billion, a big chunk of the money was said to be earmarked for India for adding drivers on its network and luring customers with cheap rides.
As the most highly valued US technology startup whose valuation famously more than doubled in just six months to $40 billion battled its worst crisis in India and a global PR disaster, authorities too were left red-faced.
Uber is credited as a disruptive force to the old order of private transportation and it has been the darling of various investors. By merely aggregating cabs and not actually owning them it has enabled the individual cabbie to make more money while lowering the cost for the end consumer. What Uber charges as a fee is a fraction of what traditional taxi companies charge because of the lack of overheads. It isnt an award winning innovation, but a win win at both ends.
What did Uber do?
To start with, some time back, RBI had highlighted objections over the way they were receiving their charges from the user. Once you register your credit card with UBER, from the next time, automatic deductions were possible. RBI thus asked UBER to have the standard two-step verification for the payments.
But the biggest blow came when one of their contracted driver raped a woman traveller and was later found to be a serial offender. For the accused driver, it was alleged that Uber had submitted a forged Character certificate.The lapses in character verification were then revealed and the Delhi govt. banned the services of Uber in the city.It is naive to suggest that Uber does not have any responsibility if a driver presents a fake certificate, license or permit. Anything can be forged in India and that is a sad reality. If you want to do business here, you do need a reality check.
But it is not just this incident that holds Uber guilty. Only All India Permit vehicles have exemption from clean fuel not the city taxis. Uber did not seek any permission from Delhi Transport department prior to starting services.
The Uber taxi in which the alleged rape took place did not have a GPS installed on it. In lieu of this, the Delhi government recently ordered all taxi operators plying in the national capital to install GPS in their vehicles. The directive will be enforced on all types of taxis: radio taxis as well as black-and-yellow cabs, according to a PTI report. In case they fail to comply, they won't be issued fitness certificate by the government, said the report.
The company has been found violating on a host of factors including lack of a registered office, permits and evasion of service tax. Every credit card transaction from a trip by the customer results in money going out of India to Uber’s account in the US. Part of it then comes back to its drivers as their pay. As a service provider, it is liable to pay tax but it did not.
Living up to the Brand Name!
The customers who opt for a Uber do so because it is cheaper than an ordinary radio cab while being perceived as a slick sophisticated service. They should not feel vulnerable like they do in a local ‘kali-peeli’ taxi or a three wheeler. It is Uber they are boarding and not the taxi of a random driver whose antecedents have not been checked.
Uberism Worldover!
A meteoric rise however has its pitfalls and Uber suddenly finds itself at the receiving end of various policymakers. There are cases against it in Germany, Netherlands and some states in the US, it has been banned in Thailand and on the verge in various other countries and it has been accused of other offences including jamming network of competition in France and encroaching on the privacy of customers in Europe.
Way Forward.
One cannot deny that even in India, a major chunk of the population is looking for a "not so expensive" alternative to public transport. And in this era of APPs, one is amused at the ease with which he/she can book a cab. There is no deying the fact that the demand for this sort of model is going to rise exponentially.
What we need to do is to draw a line where and in whose court lies the responsibility. Even if these so called "Tech companies" do not have physical presence here but they ought to set up third party contracts to look into the credentials of the drivers and other staff. Your responsibility goes beyond just connecting us to the drivers. You must ensure that people reach safely.
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