Cab-hailing firm Uber has a new plan to strengthen its base in India and take on its major rival Ola.
Cab-hailing firm Uber has a new plan to strengthen its base in India and take on its major rival Ola. Along with bets like scaling its Eats and JUMP businesses, Uber plans to reinvest its profits back into promising markets such as India. Uber’s net revenue grew 67 percent to $2.5 billion, while it cut losses to half compared to a year ago. “We are deliberately reinvesting our profits. Even with these impressive results, we’re not going to let up on the gas. We expect to reinvest our profits back into our products and tech, emerging markets like the Middle East and India, as well as big bets like scaling Eats and JUMP globally,” PTI reported citing Uber CEO Dara Khosrowshahi.
In an email to the company employees, Dara Khosrowshahi said the company’s core business has continued to perform very well and the number of trips on the platform grew 43 percent. The company bookings increased 55 percent to $11.3 billion in comparison to last year, he added.
Uber majorly competes with Ola in India to gain market leadership which is currently among its top three markets besides the US and Latin America. Khosrowshahi also said that the company is also keeping an eye on “eventual profitability” as the US-based as it increases operations in India. The company is aggressively investing in India to increase its operations. Uber invested $1 billion in India to expand its services in the year 2015.
Besides, the company said it would hold a secondary stock sale for employees and existing investors.”…a new third-party tender offer led by Coatue, TPG, and Altimeter Capital will launch next week. Eligible employees will be able to sell shares to these investors at USD 40 per share, which implies a valuation of approximately USD 62 billion,” PTI reported him as saying.