Uber to operate on 'no-profit model' in New Delhi pending license approval

Uber has reportedly announced plans to operate on a no-profit model in New Delhi, a report said.

While elaborating on the measures that the company has taken to stay on the road, Uber announced its plan to operate as "a not-for-profit platform that takes no commissions or fees for its marketplace services," pending approval of a license, reported Tech Crunch.

The statement came a few days after Uber resumed business and declared that it would be applying for a taxi license in order to operate "legitimately" in the city.

Uber said that it has based its business model in the city on that of another transportation app called, PoochO that acts as a marketplace between rider and driver and allows riders easy access to the closest transport providers.

The app has skirted the regulatory issues faced by Uber and other rivals like Ola and connects riders to only commercially licensed drivers.

This is not the first time when Uber has taken a hit to its profit margins in order to keep operating. It adopted a similar approach in Belgium and Germany in relation to UberPop, its low-cost service that lets any driver work as an Uber driver.

However, this is the first time that the taxi-hailing service has given up profit across the board.