Uber makes an art form out of negotiating with regulators. Here’s its newest playbook

The chaotic roads of Bangalore. Photo credit: Eirik Refsdal

First it launches a pilot program. Then it braces for a backlash from the local authorities. Finally, it presses them to accept the new service because it’s “good for the public.”

Uber has made an art form out of negotiating with regulators around the world. Its latest tussle is over the newly launched UberMoto in Bangalore.

Both Uber and its chief Indian rival Ola launched bike taxis in Bangalore earlier this month. The local authorities called them illegal because neither Uber nor Ola had permits to run bike taxis.

While Ola obediently suspended its bike taxi service, Uber put a spin on it.

The crafty global player told the authorities that it was not charging a commission from riders for using UberMoto. Hence there was no need for additional permits.

“UberMoto essentially encourages bikepooling and will help in decongesting city roads,” says Uber in a blog post.

See: The Go-Jeks of India are arriving

Sort out the mess or get out of the way

Photo credit: Pixabay

It’s a fact that millions of people waste precious hours daily on the congested roads in Bangalore. The city’s public transport infrastructure is abysmal with a metro rail project dragging on for years. So Uber is essentially enlisting public support to force the authorities to meet halfway instead of banning the new service outright.

“We commend the Karnataka Government [Bangalore is the capital city of Karnataka state] for reaffirming their commitment to create progressive regulations soon that prioritizes consumer choice, fosters innovation, and helps improve the traffic situation in the city,” says Uber.

Reading between the lines, it’s telling the government to either sort out the traffic mess itself, or go back to the drawing board with its regulations to find a way to let UberMoto operate.

India’s Motor Vehicles Act has no provision for bike taxis, but local transport authorities in Kerala, Goa, and Gurgaon – a satellite city of Delhi – have made allowances for them. Homegrown services like Bikxie and Baxi have come up in these places. But obviously Uber’s more interested in the big metros.

Give people the option to ditch cars