India's capital rejects new Uber licence bid

NEW DELHI: New Delhi authorities have rejected for a second time Uber's request to operate in India's capital, the latest blow for the taxi firm seeking to expand in India, an official said Wednesday.

The US-based ride-hailing company and its Indian rival Ola cabs were banned from operating in December after one of the American company's drivers was charged with raping a passenger.

Uber, which connects passengers to drivers through smartphone apps, subsequently applied for a formal licence to operate as a radio taxi company with offices and call centres.

But Delhi's deputy commissioner of transport, S. Roy Biswas, said Uber failed to comply with requirements for a licence, including a GPS system to track its taxis and police verified badges for its drivers.

Uber was also flouting the ban, with its cabs still plying the city while awaiting licence approval, Biswas told AFP.

"We asked Uber representatives to appear before us twice but they did not turn up," he said. "We have listed down all the reasons why we have refused them a licence."

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Authorities in June rejected Uber's previous application, partly for failing to halt its operations in the city.

Uber set up its India operation in September 2013, and now operates in nearly a dozen Indian cities.

Following the rape scandal, the company was accused of failing to conduct adequate background checks, after it emerged that the driver had previously been accused of assaulting women.

The Uber driver has pleaded not guilty to charges of rape, kidnap and criminal intimidation and is currently on trial.

The California-based startup's rapid international growth has sparked tensions with rival taxi companies, which protest that Uber cars are not subject to the same regulations.

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An Uber representative in India said on Wednesday the company has not received any notification from the government.

"Uber remains committed to serving the Delhi community and we continue to work closely with the Delhi authorities to address any concerns they have," the company said in a statement.

Uber said in July that it plans to invest $1 billion in India over the next nine months.