Uber To Back Its Indian Unit By Investing $500 Million By June
Bengaluru: Uber India has readied itself for another $500 million investment in the next three months, reported Economic Times. The company had committed a $1 billion investment for the country just about nine months back.
Even as the earlier commitment continues to flow in, Uber’s new tranche of nearly Rs 1,000 crore a month is expected to challenge the market leader, Ola, for the world’s third biggest market, the report added. “We are doubling down our resources for India,” a senior executive of the ride-hailing app company told ET. “The plan is to spend each dollar more efficiently than our competitors, and invest in building a team, technology solutions that are India-focussed, and quality,” he added.
Uber’s new round of funds is reported to help the company in collaborating with the government, partnering with businesses, strengthening its manpower — especially the driver-entrepreneurs — and its marketing and expansion. “(The additional investment in India) is an interesting move as it will again start the regime of heavy discounts for commuters and incentives for drivers,” Jaspal Singh, founder of transportation advisory Valoriser, told ET.
The company, over the last year, has spread to 26 cities signing pacts with different state bodies and governments. Its October 6 pact with Automotive Skills Development Council (ASDC) decided to train and certify over 100,000 individuals as commercially licensed drivers onto the Uber platform over the next 3 years. Besides creating thousands of jobs and entrepreneurship opportunities, the company also plans to make significant investments to support innovation and development.
A Goldman Sachs report “India Rising Internet”, expects the domestic online car rental market to reach $1.4 billion by 2030.
Citing analyst and experts, ET reported that Ola currently has a lead of 15-20 percent over Uber’s marketshare. However, in less than two years since it launched its pan-India services, the US-based company has surged ahead to the number two spot. The turf war has lead to certain skirmishes and accusations in the country’s courts.
Incidentally, both the companies have set a month’s deadline to outdo each other. Uber wants to top the Indian market; while Ola, with its newly-launched ‘Micro’ service, wants to leave Uber far behind in the race.
Uber to invest $500Mn in India