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Tag: Uber India

  • Uber CEO Khosrowshahi Says Rapido Surpasses Ola as Biggest Rival in India

    According to Uber CEO Dara Khosrowshahi, Rapido has surpassed Ola in the category and is now the company’s fiercest rival in India. “Ola used to be our biggest rival. Rapido is, in my opinion, the more formidable rival in India right now. They aggressively entered the two-wheeler and three-wheeler markets using a subscription model with no commission. really resilient as well.

    In his August 24 podcast, he told Zerodha co-founder Nikhil Kamath, “Ola is now kind of a distant third.” According to Khosrowshahi, one of Uber’s most significant markets is India.

    Uber’s Market Share and Growth in India

    With more than 1.4 million drivers of automobiles, two-wheelers, three-wheelers, and other vehicles, the nation is currently the third-largest destination in the world for the firm in terms of journeys. According to Khosrowshahi, Uber needs to win in India not just today but also in ten years.

    Rapido’s Financial Sustainability Concerns

    Regarding Rapido’s strategy, Khosrowshahi claimed that it gained early popularity because its subscription model allowed drivers to keep more of their profits. However, he added that Rapido was “not making money” and that its ability to expand financially will be put to the test. He declared, “We have a great deal of respect for them, and we plan to compete really hard.”

    Uber’s Strategy for India’s Ride-Hailing Market

    The CEO of Uber also discussed the rapid commerce and mobility industry in general and cautioned entrepreneurs against overestimating market size. Successful businesses always adjust. Build there and grow gradually if there is a product market fit in a specific niche. He stated that the total addressable markets are for fundraising decks rather than company development.

    Uber views itself as a “local operating system” for daily life, covering rides, meals, groceries, and retail deliveries, according to Khosrowshahi, the former CEO of Expedia. In 2020, Uber Eats was sold to Zomato in India, giving Uber a share that was later sold. “We aren’t an investment firm. When asked about leaving Zomato, he responded, “I am capable of creating operational businesses and seeing them grow over time.”

    Autonomous Vehicles Inevitable but Still Long Way to Go

    Autonomous vehicles are inevitable, but they are still years away from being widely used in India, according to Khosrowshahi. Even in mature markets, autonomous car drivers are safer, but they cost a lot more. It will take a long time for autonomy to arrive in India.

    Focus on Long-Term Competition

    He stated, “I believe we’re looking at a 20-year horizon.” Regarding leadership, Khosrowshahi stated that while he has a natural collaborative style, he has learnt to transition to “wartime decision-making” when necessary. “Sometimes collaboration doesn’t help,” he remarked, recalling Uber’s epidemic layoffs. Here’s what we’re going to do, you must say. My team gives me credit when I say, “We’re going this way,” because they can tell that I’m paying attention most of the time.

    Challenges Ahead for Rapido and Ola

    Khosrowshahi went on to say that he attempts to keep a disruptor mentality despite Uber’s size. “I notice our flaws a lot more than our successes. We want to behave like a startup behind these confines. Outside, we must acknowledge that we are a large organisation, and that entails accountability,” he stated.

    Quick
    Shots

    •Dara Khosrowshahi says Rapido has
    overtaken Ola as Uber’s biggest rival in India.

    •Ola now a “distant third” in
    competition.

    •Rapido’s strength: subscription
    model, zero commission, strong presence in 2W & 3W segments.

    •India is Uber’s 3rd largest market
    globally by journeys.

  • BluSmart is Now Known as Uber Green

    BluSmart is in an extremely difficult situation as a result of financial mismanagement and other problems. It appears that BluSmart Mobility has begun rebranding their taxis in the midst of the continuous problems. Images of BluSmart taxis being rebranded as Uber Green have recently been made public from Bengaluru. Gensol Engineering-owned BluSmart is presently in negotiations with Uber’s Indian division to lease out between 800 and 1,000 of its electric vehicles as Uber Green taxis. The procedure is already under progress, according to a media outlet, and many BluSmart taxis have already switched to Uber Green livery. The picture that is doing the rounds on the internet actually comes from the airport in Bengaluru. According to a media report, an audit has requested that BluSmart drivers cease taking reservations for the next three to four days. This development makes it apparent that drivers will be asked to work under Uber Green rather than BluSmart following the claimed audit.

    Beginning of the Chaos

    Gensol Engineering was established by the Jaggi brothers as a construction, engineering, and procurement firm. Together with Punit Goyal, Jaggi founded BluSmart in 2018. Between 2021 and 2024, Gensol obtained loans from government-backed lenders IREDA and Power Finance Corporation totalling around INR 978 crore as part of their expansion ambitions. The goal was to purchase 6,400 electric cars for BluSmart to lease. Nevertheless, SEBI’s investigation revealed that the money intended for EV purchases had been diverted. A total of INR 568 crore was spent on just 4,704 automobiles. The remaining INR 262 crore was discovered to be missing by SEBI. Large amounts of these finances were diverted through a network of connected businesses and ultimately utilised for personal indulgences, such as a luxurious flat in Gurgaon’s DLF Camellias complex, rather than for the purchase of EVs.

    SEBI Stepped in to Ban Jaggi Brothers

    Following allegations of widespread cash diversion, SEBI has prohibited Anmol Singh Jaggi and Puneet Singh Jaggi, the founders of BluSmart, from participating in the capital markets or holding director positions. Following the announcement, Gensol’s stock price crashed, wiping away investor capital and prompting a forensic examination of the business’s financial records. Top executives of BluSmart have left the company as a result; the CEO, CTO, and Chief Business Officer all quit in late March. For commuters in India, BluSmart was unquestionably a fantastic choice. It differed from Ola and Uber in that it didn’t depend on driver-owned vehicles. The whole fleet was owned and run by BluSmart. This made it easier for them to maintain and charge the system. But this system’s biggest flaw was that it required the business to invest a lot of money in assets (cars). The company is currently getting ready to shut down its own app-based ride-hailing service and switch to working as an Uber fleet partner in light of all these concerns.

  • Uber Introduces ‘Uber for Teens’ in 37 Indian Cities

    American ride-hailing behemoth Uber has launched Uber for Teens, a ride-hailing service dedicated to the safe, reliable, and convenient transportation of teenagers aged 13 to 17. For Uber, this initiative seems like an attractive pivot that could address a growing dependence on its services while also reassuring a key constituency, parents.

    Now, in 37 cities across India, like Delhi NCR, Mumbai, Bangalore, Pune, Chennai, and Kolkata, the U.S. company offers a much-in-demand secure travel alternative for teenagers. Getting there took a lot of work, given the necessity of integrating safety measures into a platform that still allows for real-time parental oversight.

    Robust Safety Features

    At the heart of ‘Uber for Teens’ is safety. The service encompasses a number of fortifying features, GPS tracking, real-time monitoring, an in-app emergency button, that might make the average insurance underwriter sleep just a little bit more soundly. Parents or guardians get notifications throughout the trip and can track their child’s journey via the Uber app. Once the ride is completed, they also receive a ride summary. Full transparency and a lot of peace of mind.

    Uber seeks to tackle the issue of parents worrying about their kids traveling alone by introducing a new set of features that provide a perfect blend of independence for young riders, along with a layer of security that gives parents peace of mind.

    Parental Oversight and Convenience

    To utilize the service, parents or guardians with a verified Uber account can invite their adolescent child to create a linked account. After initial setup, the teen now has the ability to book their own rides, with parental oversight of each trip. In an alternative scenario, the parent can ride request on behalf of the now adolescent Uber account holder, with those requests popping up in the teen’s account.

    The initiative holds significance in working toward the everyday transport puzzles that families have to solve, Prabhjeet Singh, president of Uber India and South Asia, stated. Challenges to this effect crop up daily in Uber’s business. Singh’s remit, and the initiative’s aim, is to serve the many millions of middle-income and low-income people who live across India’s sprawling cities and who don’t have one of the 27 million cars that are registered there.

    Strong Market Demand

    Before launching ‘Uber for Teens,’ the company carried out a survey to gather data on the transportation need of teenagers and their parents’ concerns. It found that 92% of parents had difficulty arranging for reliable transportation for their teens; 72% of these parents told us that their primary concern was safety.

    The study provided additional insights, showing that 93% of mothers and fathers are open to using a ride-hailing service that is specifically designed for their teenage kids. This slice of the population is clearly a potential customer.

    The Future of Teen Transportation

    India’s ride-hailing ecosystem has taken another step forward with the launch of ‘Uber for Teens.’ This new service provides a “structured and secure” experience for young users.  But the edginess of the new service is really underscored by the fact that, when it comes to ride-hailing, India is an uncharted territory, both for Uber and so for haling rides of any kind.

    Uber is combining safety, convenience, and tech oversight to make itself a suitable transportation option for families with teen riders.

  • Uber Will Soon Test its Bus Service in Hyderabad and Mumbai

    After Delhi and Kolkata, the ride-hailing app Uber plans to test its bus (shuttle) service in Hyderabad and Mumbai. The company is currently negotiating with a number of local stakeholders to obtain approval to launch in the nation’s IT hub.

    In an interview with the media, Prabhjeet Singh, president of Uber India and South Asia, stated that the firm currently operates Uber buses in two cities and that two more cities—Mumbai and Hyderabad—are set to follow. Regretfully, Bengaluru is not yet included in this list.

    Bengaluru Being a Dream Project

    According to Singh, Uber is actively negotiating with various parties to launch bus service in Bengaluru. “It’s my passion project to make sure we can bring Uber buses to Bengaluru, assuming the regulators allow us to do so,” he said, adding that it demonstrates the localisation process and how we are evolving to meet customer preferences.

    Singh further added that Uber needs regulatory approval to proceed to introduce such a service, and we have failed to obtain it. According to him, company is actively negotiating with a number of parties in the hopes of receiving approval to proceed, but as of right now, company has not been able to strike a positive chord.

    Urging Civil Society and Policy-Making to Open Up to “Such Innovations”

    Singh also called on those involved in policy making and civil society to be more receptive to “such innovations.”

    “I would encourage a significant number of individuals in civil society to participate to make the working class’ daily travel hassle-free with such innovations. Numerous businesses are eager for Uber Shuttle to be introduced. From Hebbal and ORR (Outer Ring Road), you could take a shuttle. Air-conditioned shuttles with reserved seats that run every two to three minutes. These are situations that might coexist with the city’s other public transportation options. I hope policymakers are much more receptive to innovations like this,” he opined.

    Uber India’s Vision

    The goal of Uber’s public transportation integration strategy in India is to provide a smooth system that enhances city efficiency while saving passengers money and time. High-capacity vehicles (HCVs) are available for Uber Shuttle service, and reservations can be made using the Uber app. Before the shuttle arrives, riders can track it. Mumbai, Hyderabad, Kolkata, and Delhi NCR all offer Uber Shuttle service.

    Uber has more than one million drivers, according to a media source, which CEO Dara Khosrowshahi revealed on the company’s March quarter earnings call. According to Khosrowshahi, bookings and transactions show that India is one of the company’s fastest-growing regions. Larger markets tend to grow more slowly, but India stands out as a major market that is expanding quickly, he added further.

    To Integrate Its Two-Wheeler Fleet, Uber Has Inked a Contract With Shadowfax
    Uber and Shadowfax have partnered to combine UberMoto, the ride-hailing platform’s bike-taxi service, with Shadowfax’s two-wheeler fleet.
    StartupTalkyNitin Konde

  • Uber Is Considering Reintroducing Its Premium Service, “Black,” to the Indian Market

    At a time when customers in India are willing to spend more on high-end experiences, ride-hailing platform Uber is reintroducing its flagship product, Uber Black, to the nation.

    According to a media report, the service is set to be launched in the coming weeks, initially targeting certain areas in Mumbai.

    In 2013, the firm began operating in India with Uber Black, which offered on-demand access to luxury vehicles including Mercedes, BMW, and Audi. It supplanted the high-end vehicles with more affordable options, such as the Toyota Innova, Honda City, and Toyota Corolla. A year after that, the service was discontinued.

    Uber’s New Business Strategy

    According to various media rports, Uber Black is set to undergo a major overhaul, resulting in a “far more sustainable model” that will offer consumers white glove cab service in larger vehicles compared to traditional commercial sedans. Additionally, reports mentioned that the service will make use of SUVs and MUVs manufactured by Toyota, MG, and other brands.

    Uber Black, which will be priced 30–40% higher than the platform’s current top offering, Uber Premier, is expected to have significant uptake by businesses for their business travel expenses. The American ride-hailing giant has been pouring resources into expanding its network of fleet partners. Its biggest vehicle partner, Mumbai-based Everest Fleet, was one of its initial investors in a $20 million round last year.

    Motive Behind This Move

    The idea that is being considered within the organisation is to develop a mobile application that caters to all different kinds of clients. Consequently, the platform is considering the possibility of releasing items that cater to both extremes of the spectrum, as was emphasised in a media release.

    When it comes to the Indian market, the firm is expanding its offerings to include items such as Uber Black in addition to intercity rides and rentals in an effort to achieve larger average ticket sizes and a more profitable dollar.

    The premium ride-hailing products that Uber offers in India are expanding at a significantly quicker rate than Uber Go, which is the company’s entry-level offering for on-demand taxi services. According to a source in the media, the corporation is thinking about increasing its focus on providing services of a higher quality.

    Uber has revealed to a well-known media outlet that they will be relaunching its Uber Black service.

    The firm noted in a press release that there is a critical mass of travellers who are prepared to pay a premium for on-demand services that provide them with a high-end experience. As Uber serves to a complete spectrum of customers who have diverse mobility demands, we are reacting to this expanding demand at the same time.

    Success Story of Uber – How It Scaled Heights in Mobility Sector?
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    StartupTalkyChayanika Goswami