Uber is scheduled to begin operating buses in Delhi after obtaining permission from the transportation department to operate bus services in the capital.

In addition to hyperlocal deliveries, Uber currently provides ride-hailing services for four-wheelers, auto rickshaws, and two-wheeler taxis. Uber competes with Ola Cabs and Rapido, among others.

The Delhi government's app-based premium bus aggregator initiative, which was announced in November and intends to encourage the upper middle class to transition to public transport, is what led to Uber being awarded a license. Aggregators are permitted to establish dynamic pricing under the system, but it must be less than the peak fare for DTC air-conditioned buses.

Uber says currently users will be able to book bus rides along with other mobility options on its app. India is the second country after Egypt where the US company operates buses under the Uber Shuttle service.

Under a Memorandum of Understanding with the West Bengal government, Uber Shuttle is currently operating in Kolkata. Since last year, the business has been operating an Uber Shuttle test program in Delhi.

Uber intends to operate buses on routes that link residential regions and business centers throughout the entire city of Delhi. Each bus will be run by regional fleet partners and seat between 19 and 50 passengers.

“We are committed to building a business that serves the mobility needs of every Indian - buses are an important addition to our available products. After a successful pilot where we’ve seen a strong demand for buses, we are excited to formally bring the magic of Uber rides to buses in Delhi,” says Amit Deshpande, head-Uber Shuttle, India.

The Delhi transport department says, "We are pleased to extend an opportunity to Uber to utilize its global experience and technological prowess to contribute to an elevated commuting experience for the people of Delhi.”