NEW DELHI: Web-based taxi company Uber has complied with an order to stop operating in New Delhi after an Indian woman said she was raped by one of its drivers.

The city government said Monday it was banning the popular but controversial service, which has come under heavy criticism since the assault.

The suspect, who is in police custody, was driving a taxi while on bail on a slew of previous charges including rape and molestation.

“The events of this week have made us reflect on our operations in India and we are immediately undertaking a number of important actions,” the US-based company said in a statement late Thursday. “During this review, we will suspend operations in New Delhi."

Uber, which has come under fire for failing to perform background checks in India, also said it would tighten its driver screening procedures.

The taxi app service has expanded rapidly around the world since it first launched in the United States in 2009.But it is coming under increasing criticism for failing to adhere to the strict regulations that traditional taxi operators have to follow.

An Indian court sent the Uber taxi driver accused of raping the young passenger to judicial custody for two weeks, after the attack led the government to request a nationwide ban on the popular US online cab company.

More on this: Indian judge sends Uber rape suspect to custody for two weeks

Police said the 32-year-old driver dropped the woman home after attacking her and warned her not to inform the authorities. She managed to note the driver's number and take a photograph of his car, they said.

The accused was arrested for raping a woman three years ago but was later acquitted, said Madhur Verma, deputy commissioner with the Delhi police.

India's capital also decided to ban all internet-based taxi firms after the passenger was assaulted. The Delhi transport department issued a public notice in a national daily stating that only six registered radio taxi companies are allowed to operate in the city.

Read more: Delhi to ban all internet taxi firms after Uber rape claim