Uber Resumes Services in India's Capital

Jan 23, 2015 10:00 AM EST | Matt Mercuro

Taxi-hailing app Uber Technologies has restarted its services in India's capital after being banned following rape allegations against one of its drivers. A government official told Reuters however that the company remains blacklisted.

The Uber app showed taxis are available to users in New Delhi on Friday after the company applied for a radio taxi license. Last month, the company said to the media that standard radio taxi regulations were not compatible with a technology company that connects passengers with its drivers.

"They can't start operations," said a senior transport official, who declined to be identified to Reuters, who was not authorized to speak with media. "They don't have a license yet, they have only applied for it. It may get cleared, we could request changes, or we may reject it."

The news comes as Uber tries to counter bans in places like Spain, South Korea, and France, which were imposed since some of its drivers were not properly licensed. The company has also had to deal with rape allegations against drivers in Boston and Chicago.

This week, Uber decided to team up with a taxi firm in Korea to comply with local regulations, after company Chief Executive Office Travis Kalanick promised to create 50,000 jobs in European cities where Uber is not banned.

Outside of the U.S., India is Uber's largest market by number of cities covered. The country's radio taxi market is believed to be worth around $6 billion to $9 billion.

Delhi's government banned all taxi-hailing app provides last month from operating in the city after the alleged rape in December. Uber has admitted that it didn't carry out on background checks on drivers in India, which would have helped since the driver was on bail for sexual assault, according to Reuters.

The incident caused protests and debates over the safety of Uber passengers. The company has responded by added more safety measures, like strict driver checks and an in-app emergency button.

Uber was valued at $40 billion last month. 

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