Uber launches auto-rickshaw service in Delhi

Uber has expanded its offer in the national capital by allowing the customers to book auto-rickshaws and pay either by cash or bank card as part of a drive to boost its presence and compete with a local rival.

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 auto rickshaws.

Under the Uber auto service, the company will not charge a fee for booking auto rickshaws, 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.

"We want to cater to all segments and democratise the entire Uber experience," Uber general manager Gagan Bhaia said.

Bhatia said the business potential was immense --- there are nearly 200,000 auto-rickshaws 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.

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.

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 signed up with them it is because it is beneficial for me. In my free time, I get passengers. Before I had to drive around looking for passengers but now I get a message on my device and I get a passenger," Hassan said.

Inayat Ramdas, a frequent Uber user, said she finds the app convenient and the ride safer.

"They register you online and there is 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 then the amount of money you will be spending. An app like Uber you can get your payment cut by your card as well so there is no cash payment, so, it is very easy," Ramdas said.

However, the service is not for the semi-literate. And this excludes some of the potential drivers too, driver Luvkush Soni 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," Soni said.