The public outcry brought about by rape accusations against an Uber cab driver, is about to affect the company's bottom line.

New Delhi's transport commissioner, Kuldeep Singh Gangar, says Uber is now banned from operating here.

He says Uber acted irresponsibly, hiring the driver despite a past arrest for alleged sexual assault.

(SOUNDBITE) (Hindi) DELHI TRANSPORT COMMISSIONER, KULDEEP SINGH GANGAR, SAYING:

"We have taken action against this particular taxi and the driver. Apart from that, we have banned uber.com in Delhi and blacklisted it."

The driver has been remanded in custody after a brief court appearance.

For San Francisco-based Uber, it's another setback for its international ambitions. A Netherlands judge has banned Uber from taking bookings via its smartphone app.

But the New Delhi accusations are potentially more serious.

Uber CEO Travis Kalanick has issued a statement calling the incident "horrific." He says, quote: "We will