India ‘fundamental’ to Uber’s growth strategy

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Published: October 23, 2019 1:12:35 AM

Ola and Uber are locked in an intense competition in a market which is expected to be a leader in shared mobility by 2030.

The service launch comes after Uber won a public bid to offer its mobility services across 210 DMRC stations.

Uber on Tuesday said India is “fundamental” to the ride-hailing firm’s growth strategy. The firm that competes with Ola in the market launched its public transport services in the Capital — a first for Uber in Asia and the ninth city globally.
In the next 10 years, the company’s growth will be defined by markets like India, Africa and the Middle-East, said CEO Dara Khosrowshahi. “Profitability metric of our business here (India) is improving. We will continue to remain and invest here,” said Khosrowshahi.

The firm’s primary unit, Uber India Systems, reported revenues of Rs 522.41 crore in the year to March 2018, against revenues of Rs 410.71 crore posted in the year-ago period. Profit increased marginally to Rs 26.46 crore in FY18 compared to a profit of Rs 19 crore in FY17, according to documents sourced from business signals platform Tofler.

The public transport service, launched in partnership with Delhi Metro Rail Corporation (DMRC), will feature as an option on the Uber app and will allow riders to see the fastest and cheapest routes, real-time schedules as well as departure time for public transportation including the metro, buses and walking directions to and from nearby metro stations and buses (as of now limited to metros, will be extended to buses in near future). The service launch comes after Uber won a public bid to offer its mobility services across 210 DMRC stations. An estimated half a million users accessed the transit option on the Uber app across eight cities, officials at the company said.
Khosrowshahi said Uber’s long-term vision is to be the “operating system for everyday life”.

The announcement comes days after Ola launched its self-drive car-sharing service, Ola Drive. The service, which has been rolled out in Bengaluru, will soon be extended to Hyderabad, Mumbai and New Delhi. With over 200 million subscribers, Ola Drive has the largest user base for a car-sharing service in India, the company claims.

Ola and Uber are locked in an intense competition in a market which is expected to be a leader in shared mobility by 2030.

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