Uber reiterates its biz model is 'different' from others

Faced with the prospect of being outlawed in Delhi, San Francisco-based taxi aggregator Uber said on Thursday it was a challenge to explain the company’s business model but continuous dialogue with the government would resolve the issue.

“Our business model is different from others, it’s technology, we are in continuous dialogue with the government but it’s a challenge to explain it,” said Neeraj Singhal, head of expansion, India & subcontinent, Uber.

He added the Bidhannagar (a suburb in this city) model is an ideal way to deal with companies like Uber. The Bidhannagar commisionerate declared Uber an information technology (IT) company in January. Uber has been arguing it is better governed by the IT Act, as it is a technology platform and not a taxi company. Therefore, giving an affidavit stating it comes under the Motor Vehicles Act might be a sticking point, as with Delhi.

According to reports, Delhi's transport authority (DTA) has given a deadline of February 25 to comply with this and related requirements. Among things missing from its Delhi application were an undertaking for parking, a telephone number, an e-mail address, and an address proof of its registered office, call centre arrangement details, and the feedback process.

“I don’t think we will ever set up a call centre and we have already safety features which are more pragmatic in dealing with safety issues,” Singhal said.

After apprehensions about safety issues in the wake of the December rape in a taxi under the company's network, Uber created an SOS button which alerts the local police upon pushing on it, and a safety net feature which allows users to share their trip details and real-time location with up to five contacts.

With Union transport minister Nitin Gadkari saying app-based taxi services are not merely technology companies and should be governed under the Motor Vehicles Act, Singhal said there was still a clear misunderstanding about the business model. “That’s his understanding of the issue but it is not suitable for (our) business model and we are in continuous dialogue to reach a solution.”

He ruled out exiting from any of the 11 cities it is currently operating in. “Road blocks have been a part of our business everywhere and we can deal with those,” he said.