The possibility of Uber wrapping up operations in India must have surely come as a shock to loyal users in India.
A recent article stated that the RBI‘s move, asking Uber to comply with its regulations regarding credit card purchases, reduces the ‘ease of doing business’ in India, and could also send a similar signals to potential MNCs that are either doing business, or planning to enter India.
Isn’t every company that does business in a foreign country, bound to comply by the regulations of that country? Of course India has a lot of bureaucratic red tape, and corporations frequently struggle to get around them. However, in the case of Uber this seems to be different. While this directive follows complaints by the Taxi union in India, there seems to be some merit to it.
Credit card frauds in India are high, and the two step verification process was aimed at keeping this in check. While single-click payment is always convenient, be it with Uber or Amazon or others, it will be interesting to following regulations is really big enough to make Uber consider shutting shop in one of the fastest growing and highly lucrative markets. This directive is dwarfed by challenges Uber faces in Europe, with Taxi unions trying hard to ban the service altogether. Uber, two months, your move.
Here’s the article on the same: Link