Controversial taxi app Uber has announced that it will invest $1bn to expand its business in India.
Uber is currently banned there after rape accusations against one of its drivers. The company has applied for licenses in other Indian cities and continues to operate its service whilst the decisions are pending; estimates put the number of current Uber journeys in India at 200,000 per day.
The decision comes after the firm in June said it wanted to invest the same amount in China, also to expand to more cities in the country.
Uber’s reputation has recently taken a hit in several countries, including the UK and France.
In the UK Uber has had several problems including recent claims that their app misleads users by displaying taxis nearby – which don’t exist. It is also facing facing legal action from drivers who claim the taxi-booking firm does not provide them with basic workers’ rights, including the minimum wage and paid holiday.
It says Uber does not provide its drivers with the rights normally afforded to employees, claiming instead that they are “partners”, or self-employed.
Similarly in France, their app UberPOP has been banned by the government after its introduction provoked protests in the capital. French taxi drivers argues that they were being unfairly undercut by Uber; cab drivers in France must pay thousands of pounds a year in licence fees, and say that they have lost between 30% and 40% of their income over two years because of the growth of UberPOP.
Perhaps further investment in Asia and India is a sign that they are considering relocating the bulk of their business there in the wake of disruption and litigation in Europe.
