I think it's worth looking at this as the intersections of two contexts. One is the one that's mostly discussed below, how do you assess the criminality of someone who was arrested but not convicted. We are all, I hope, familiar with the particular complexities of rape as it's both harder to prove and often carries unusually negative consequences for the accuser, compared to an accusation that someone robber you or whatever, as well as India's particular cultural situation.
The other one though, is the context of what job you're hiring someone for; in this case, to be a sort-of taxi driver. That means the person you hire is inevitably going to come in contact with some potentially vulnerable individuals as passengers (and I bet it wouldn't be too hard to make estimates on the probability of any given journey having a single female passenger). If there's a suspicion that the person might exploit that fact, then you shouldn't hire that person as a driver. That's a bit unfair to some potential drivers, but the flipside is that you have ethical obligations to both employees and customers.
For other contexts, the calculus is different. For example, if I was Uber I would not be too worried about a previous conviction for auto theft, since drivers supply their own cars, and if the applicant has not been in trouble for a reasonable length of time then Uber doesn't really have any assets at risk. Likewise, I could perhaps be more open-minded about an arrest without a conviction for assault if I were hiring someone to do server maintenance vs. hiring them as a driver, as the probability of an offense x the number of personal encounters an employee would have in the course of normal duties would be much lower.