Uber Resumes Operations, But With A Revamped Business Model

In a move that has surprised many a folks, cab service provider Uber has now made it clear that it will adopt the model of its competitor, Pooch-O. Pooch-O is a taxi service providing app developed by the Delhi Government in association with a non-profit organisation that allows riders to book auto-rickshaws.

Pooch-O, follows a business model which is approved and endorsed by the Govt. itself, is a not-for-profit platform that acts as a marketplace between rider and commercially licensed drivers having a PSV Badge issued by the transport department. Unlike Uber, Poocho does not take any commission or fees for its services.

According to the company, the new model allows them “to legally operate, enabling safe, reliable rides to an underserved public while working out the details of a long-term solution with the government.”

This is a significant shift from the revenue model that the startup uses elsewhere. Earlier, Uber charged its drivers a 20% commission, whereas now it has specified that it won’t charge anything until and unless the startup’s legal framework has been redone.

Last december, a woman was raped by a driver she booked using the app. And what followed next was a ban on Uber and other app related cab booking services, who, according to the transport department, were operating illegally without a radio-taxi-license.

Last week, Uber had announced its comeback after facing a month and a half’s ban in the nation’s capital. In accordance with the new taxi norms stating, “radio cabs operators must have a fleet of 200 vehicles, a 24 hour call center and panic buttons in their vehicles”, Uber had applied to become a licensed radio taxi operator in the city.