03/06/2015 7:48 PM IST | Updated 15/07/2016 8:25 AM IST

Uber's Application For Cab License In Delhi Rejected

In this photo taken Tuesday, Dec. 16, 2014, a taxi on Market Street goes past the headquarters of Uber in San Francisco. (AP Photo/Eric Risberg)

NEW DELHI -- The Delhi government has rejected applications from cab aggregators Uber, Ola And TaxiforSure for permits to operate in the national capital.

The development comes as a setback for Uber and other operators who were banned in Delhi by the Union Home Ministry early this year following an alleged rape by an Uber cab driver in December, last year.

After staying off the roads for a few weeks, the companies started operating again. At the time, Uber said that it has applied for licenses to become a radio cab operator.

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Delhi does not have a regulatory framework that recognises app-based cabs.

The conditions to become a radio cab operator are onerous and would be virtually impossible for any app-based aggregator to meet. But The Hindu reported that the reason Delhi government rejected their applications is that they failed to affirm that they were complying with the January ban by the Union Home Ministry.

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In early May, the telecom ministry had asked internet service providers to block the websites of Uber and Ola, indicating a ham-handed attempt at clamping down on the services. The websites and services continue to be accessible.

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India is the largest market outside the United States for Uber, the San Francisco-headquartered tech giant that has disrupted taxi markets all over the world. Ola acquired TaxiforSure, earlier this year. But the two companies operate separately.

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