Uber’s recent post about following Indian laws have caused negative comments about them from competition
Meru comes up with its latest blog talking about how Uber is disrespecting Indian Government laws.
It all started on June 28th, 2016 when Uber’s top executive Bhavik wrote a blog about how Uber is respecting Indian laws and how competition is calling them a foreign company. Bhavik talks about how regulators are being irrational and not seeing what technology disruptions Uber has brought in the taxi industry.
Replying to this, Meru came up with their latest blog stating all the rules Uber broke and how their business model is making cab drivers and existing taxi players suffer
- Reserve Bank’s two factor authentication to reduce credit card frauds was not followed by Uber. This credit card mandate was put in place since 2010, three years before Uber entered Indian market. Uber uses a payment system that does not adhere to this 2 step authentication. RBI took almost a year to finally call their bluff and forcefully put a full stop to this violation.
- Taxi rides are subjected to service tax, which Uber is not paying to the government. This clearly shows how much respect Uber has towards laws.
- Since 2001 no diesel vehicles are allowed to be used as taxi service within the city of Delhi. All existing taxis had to buy expensive CNG kits to run services. Uber has encouraged all their drivers to buy new diesel vehicles and provide taxi services. Just because Uber has large VC funding, does not mean it can bend the laws to make their wallet fatter. This company is providing disrupting technology at the cost of polluting the capital city.
- Law also clearly mandates that All India Tourist Taxi Permit (AITP) cabs can’t be used for point to point service within a city. Uber has disrupted this law too.
- In Mumbai it is mandatory to have government assigned badges for taxi drivers, but none of the Uber drivers wear one. This badge can be obtained by the person only if he is residing in Maharashtra for more than 15 years.
- Finally cities like Bangalore, and Mumbai have passed a court order to remove surge pricing which was happily ignored
All these acts of Uber are due to heavy funding of foreign investors. They will wipe out or buy out the competition to become a monopoly in this market. Never the less, government’s recent notice to Uber global CEO shows that such unlawful steps cannot be tolerated. Meru lost its market share due to Uber providing cheap rides to customers, and heavy incentives to drivers. In this war only the taxi driver or the taxi taker will be the loser.
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