Uber launches auto-rickshaw hailing service in Capital
10 April 2015 5:56 AM IST
“Autos are the most ubiquitous transport in almost any city and Indians are used to having autos around. It simply makes more sense for the auto driver and commuter to connect via our platform and use the advantage of new technologies,” Uber’s Delhi GM Gagan Bhatia said. However, unlike its taxi-service, customers will have to pay the fare in cash for the auto-rickshaw service. Last year, Bangalore-based Ola had launched a similar service in the national capital.
Bhatia said the company’s vision is to bring the Uber experience to more people and “uberAUTO is another step in this direction.” The company said the pricing will be based on the fare rules set out by Delhi state authorities and Uber will not charge any fee for the service. The company has been in headlines since December 2014, after one of its driver allegedly raped a passenger in the city. Soon after that, the government blocked its services in the city, however, the company did not suspend its operations. The government is now mulling to block its app services and has already asked Department of Electronics and Information Technology about the same.
The service works just like hailing any other kind of Uber vehicle (it’s much like the rickshaw service Ola runs too). Users open the app, select UberAuto from the options, and wait for a driver to confirm. Customers can hail autos even when there is no credit in their Paytm wallet — the payments service that Uber integrated in India — since the focus is on cash.
Uber has been running its service in New Delhi under a ‘no profit model’ in the aftermath of the alleged rape of a passenger. UberAuto continues that approach, and passengers will not have to pay booking fees or a service charge on top of the fare. This service is an interesting addition for a couple of reasons.
Auto rickshaws are, as Uber said above, an important layer of the transportation ecosystem in India cities. They are the cheapest and most ubiquitous way to get from A to B — so, in that respect they compete with Uber’s service for passengers. Getting auto rickshaws on the Uber platform is a big win from that point of view, because it increases the reach and appeal of Uber’s service, encouraging more consumers to download its app. Of course, once a new user has the app, there’s the possibility that they might, in time, ride with other types of Uber vehicles — which return higher margins for the company than a rickshaw.
Bhatia said the company’s vision is to bring the Uber experience to more people and “uberAUTO is another step in this direction.” The company said the pricing will be based on the fare rules set out by Delhi state authorities and Uber will not charge any fee for the service. The company has been in headlines since December 2014, after one of its driver allegedly raped a passenger in the city. Soon after that, the government blocked its services in the city, however, the company did not suspend its operations. The government is now mulling to block its app services and has already asked Department of Electronics and Information Technology about the same.
The service works just like hailing any other kind of Uber vehicle (it’s much like the rickshaw service Ola runs too). Users open the app, select UberAuto from the options, and wait for a driver to confirm. Customers can hail autos even when there is no credit in their Paytm wallet — the payments service that Uber integrated in India — since the focus is on cash.
Uber has been running its service in New Delhi under a ‘no profit model’ in the aftermath of the alleged rape of a passenger. UberAuto continues that approach, and passengers will not have to pay booking fees or a service charge on top of the fare. This service is an interesting addition for a couple of reasons.
Auto rickshaws are, as Uber said above, an important layer of the transportation ecosystem in India cities. They are the cheapest and most ubiquitous way to get from A to B — so, in that respect they compete with Uber’s service for passengers. Getting auto rickshaws on the Uber platform is a big win from that point of view, because it increases the reach and appeal of Uber’s service, encouraging more consumers to download its app. Of course, once a new user has the app, there’s the possibility that they might, in time, ride with other types of Uber vehicles — which return higher margins for the company than a rickshaw.
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