Uber and its primary local competitor Ola have both been ordered to cease operations in the Indian city of New Delhi. If either of the companies violate this order, the authority has said that it could indefinitely delay the applications for a taxi radio license.
The order came down from the city's transportation officials who are still processing both transportation brands' applications to operate as a licensed taxi service. The ban seems to be temporary, and is only to hold both operations off until each can operate legally in the city.
In letters to both companies, the city is asking for a clear affirmative answer that each understsands the need to cease operations immediately, saying:
[Your company is] directed to seek a sworn affidavit declaring therein that you are complying with the ban order imposed upon your company in letter and spirit.
This is especially significant for Uber, as India is its second largest market both by size and growth. The on-demand ride service also just signed a partnership with India's Times Internet, which was aimed squarely at fueling further growth.
This latest setback comes after a ruling last week in Germany that rendered the UberPOP service illegal in all of Germany.
The decision came down as part of a lawsuit by a German taxi operator Taxi Deutschland, and was a continuation of a judgement reached last September that found Uber could operate within the country. Each violation of the ban comes with an extraordinary fine of Euro 250,000, and the company can still offer its services that use licensed chauffeurs and taxi drivers.
Other Uber challenges include a recent raid in Paris that confiscated over 1,200 cell phones and a December judgement in the Netherlands against the UberPOP service.
NB: India law image courtesy Shutterstock.