On Wednesday a Delhi court axed a government ban that was imposed not long ago on the business activities of California-based Uber Technologies, the disruptive online car-sharing service.
Now the US company can operate once more in the capital city of the country and reapply for a license. Uber’s operations were disallowed in the city in December 2014 because one of its drivers was accused of raping a client. The authorities then decided to veto the company’s license application last month and even went on to impound some of its vehicles, because of alleged violations of the ban. The Delhi High Court has decided the state government will be free to introduce tough regulations for app-based taxi companies such as Uber but was against a complete ban, according to a lawyer of the Delhi government. “Uber can now ply on Delhi roads,” commented government lawyer Naushad Ahmad Khan. “It, however, has been asked to appear before the competent transport authority to pursue the application.” Uber went to court against the government’s move to reject the license application following a similar move by domestic rival Ola.
Naturally, the company’s local representatives said Uber was satisfied by the new court directive. “We are committed to working with the government to develop a regulatory framework that encourages innovation,” commented Gagan Bhatia, the company’s general manager in Delhi. The incident last December triggered widespread protests against Uber and other online taxi companies that would rely mostly on mobile technology to connect drivers with passengers, lacking proper government registrations or safety checks.