Thursday, April 16, 2015

Uber launches autorickshaw service in New Delhi


Dealing with the notorious autorickshaw drivers of the Indian capital can be a daunting task even for a seasoned Delhiite and a rather intimidating experience for an outsider when an army of drivers swoops down on him like vultures.

Passengers often complain about being taken for a ride as most drivers seldom charge by the government approved meters and often refuse to pick up short distance travellers.

Now, online cab-hailing company Uber plans to introduce some sanity into that world.

Uber will allow passengers in New Delhi to book autorickshaws, the cheaper three-wheeled taxis, as part of a drive to boost its presence and compete with a local rival in one of its key markets.

Under the uberAUTO service, the company will not charge a fee for booking autorickshaws, users will be allowed to pay for the journey in cash, and the pricing will follow government fare rules, Uber said in a statement on April 9.

And some of the drivers seeking an extra source of income have already signed up with Uber.

Abul Hassan, one of the first drivers to get trained by Uber in using their mobile app technology for Delhi's autorickshaws, said he is happy that he took the early plunge.

"If I have tied up with them then it is because it is beneficial for me. In my free time, I get passengers. Earlier I had to drive around looking for a passenger but now I get a message on my device and I get a passenger," Hassan told Reuters Television.

The launch of the service in New Delhi marks a shift from the company's global business model. So far, Uber's mobile application that connects riders with taxis in cities around the world has charged customers through credit cards or other electronic payment means, but not in cash.

Gagan Bhatia, general manager for Uber in New Delhi, told Reuters that autos were too big a pie to be left out in India.

"Autos are, it is a lifeline of Delhi. Autos are an absolute lifeline of Delhi. People in Delhi depend on autos. There are use cases which are fulfilled only by taking an auto - whether it is a grocery run or a bank run. People prefer taking an auto instead of taking their cars out or taking a taxi and we want to cater to that segment. We want to cater to all segments and democratize the entire Uber experience," Bhatia said.

The launch in Uber's largest market outside the United States comes against the backdrop of stiff competition with India's biggest online cab-hailing company Ola, which already lets customers hail autorickshaws.

Some of the autorickshaw drivers said not everyone interested in joining would actually benefit from the engagement as several of them were semi-literate.

Luvkush Soni, one of the drivers running a mobile auto app, said: "The details of a prospective ride come in English language and we get only five seconds to read and respond to that text message. If we do not read and click on that message within five seconds, then the option moves to another driver. So, for those drivers who are not educated or literate, for them it is a big problem."

Uber's Bhatia said they were aware of the challenges lying ahead and were devising ways to address them by localizing their content to suit the needs of the Indian customers.

He added that the business potential was immense -- there are nearly 200,000 autorickshaws running on the roads of Delhi and the entire National Capital Region comprising the satellite towns of Noida, Ghaziabad and Gurgaon along with Delhi is home to 25 million potential customers.

And if some of the customers are to be believed, they are already hitting the right gears.

Inayat Ramdas, a working girl and a frequent Uber user said she not only finds the app convenient, but also the ride safer.

"You download the app from the app store and you fill in your details, they register you online. They are very convenient - at the touch of a button you just order a cab and you can even see if they are nearby or how long it will take you to reach your destination, and the amount of money you will be spending. An app like Uber you can get your payment cut by your card as well, there is no cash payment, so, it is very easy," Ramdas said.

The launch comes at a time when Uber is battling regulatory uncertainty over how it will continue to operate in New Delhi.

Uber was banned in the city following allegations of rape against one of its drivers in December, but has found support from India's transport ministry.

source: www.abs-cbnnews.com