Uber, the online taxi hailing app has suspended its auto rickshaw service in Delhi, just seven months after it was introduced. Uber introduced this service back in April, with 5,000 registered registered autos.
In a statement, Uber has said that introducing auto rickshaw service was only an experiment and the service has been temporarily suspended to resolve specific problems. Uber's rival Ola, is still operating auto rickshaw services.
A few experts believe that one major reason for Uber to suspend its service is because of licence issues. Auto Rickshaw permits are issued to individuals only, and not to fleet owners or corporates to own this sector.
Another problem in this sector is that for a place like Delhi, only 10,000 auto rickshaw permits are allowed. This restriction has even created a grey market for auto rickshaw permits. Also, in some cities, auto rickshaw permits are as expensive as the autos itself.