Uber’s Model Faces a Setback in India

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Aug. 25 (Bloomberg) –- Bloomberg’s Haslinda Amin reports on Uber facing a bumpy ride in India as the RBI tightens credit card rules. She speaks to Rishaad Salamat on “On The Move.” (Source: Bloomberg)

Credit card rules, another road block for the taxi maker which has been described as illegal by city authorities in sule.

And what's india done to put the brakes on?

Well, the one stepping on the brakes is the r.b.i., the central bank.

It's closed a loophole.

All actions made on india-issued credit cards have to go through a two-step procedure.

That means one additional step to the payment system and if they want to comply with the new rules, it would have to change its app or adopt a different model totally.

The actions are free with pretty much with indian rivals have to do.

This is what local taxi companies have been complaining about.

Overpayments are collected and transferred to a dutch bank and the procedure goes against india's controlled regulations and in a way, this is what the r.b.i. is trying to address.

A more consistent payment system.

This is a company that is quite used to getting pushed back.

How difficult has it been for them to penetrate markets in this part of the world?

Well, it's not short on challenges for sure.

You talk about how its operations in korea have been touted as illegal.

Its operations in jakarta are under question.

The city may shut down down over violations.

On top of that, authorities does say it is confusing as both use black license plates instead of yellow which all vehicles are meant to have, yellow license plates.

These are some of the issues.

To be sure, they are not facing intense resistance in asia.

Others, fighting for a slice for the logistics market and that is the case in southeast asia.

This text has been automatically generated. It may not be 100% accurate.


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