In Delhi, it is running on a no-profit service and there are no service charges for the passengers.
Uber is also trying to introduce its auto app service in Bengaluru. Passengers can book an auto through the app without having to mention the destination and can pay in cash.
Users can rate the app service and the taxi drivers’ service over the app as they do it for other taxi app services. The prices are charged according to the Delhi Regulatory authority. Since auto rickshaws are common everywhere in many cities in India and it is an existing service market which has never been tapped by the companies earlier except Ola, Uber is trying to cash in on this opportunity for its best use. With the backdrop of Delhi Uber incident, this UberAuto service is trying to bring in confidence building measures among the public.
Experts say that “This is a compulsion now to increase the user base. There is potential customer segment of 1 million in Delhi alone, so all cab companies would require to enter into this (auto) space sooner or later,” and that “The purpose is to upgrade some of the users from auto to taxi segment.”
Autorickshaws are considered to be the cheapest and easiest way of trasportation and when it combines with Uber service it can’t get better than this. It’s not going to be late that Uber’s auto app will creep on every user’s smartphones.
Uber’s auto hailing service comes as a radical change in the company’s perspective and business model. So far, Uber has been involving in providing taxi services through credit cards or electronic payments predominantly all over the world. Now, the UberAuto comes as a welcome change since most people could not use the Uber services since it involved mostly online payments.
Only Ola and Uber are the competitors in this market and Uber is involved recociling Delhi rape issues, though with some support from Transport ministry, it is expected to do its best its continued service in New Delhi. While Uber is headquartered in US its concentration must be more in a competitive market like India.
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