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The Indian government recently called for all unregistered taxi services to halt operations. The order came after the reported rape of a woman by a driver for the company Uber in the capital New Delhi. Uber uses a mobile app to link drivers and people seeking a ride. A statement from Uber said the company will work with the Indian government “to establish clear background checks.” The incident has brought attention to the issue of rules for mobile service businesses. The issue has grown more important with the expansion of what is called the “sharing economy.” Uber has been expanding quickly. The company says it operates in over 200 cities and over 50 countries around the world. Its fast growth has led financial experts to value the company in the billions of dollars. However, Uber’s expansion means it is competing with existing taxi services, causing some cities and countries to ban the ride-sharing service. The “sharing economy” permits individuals to rent things they own such as a car, or room, to people anywhere using mobile apps. Even payment is through an app. The issue is that they are not supervised the way taxi services or hotels are. Critics say they can be unsafe. Uber says on its website that every ridesharing driver is investigated using a criminal background check. But in the reported case in India, the company is accused of not performing a check of the driver’s criminal record.
