Cab aggregator Uber on Wednesday said it is doubling investments in India for a “long and positive future” in the market.
“India is absolutely a core market, now and in the future. Uber’s success is hard coded to India’s success. We are doubling down on our investments in this country like never before,” Barney Harford, Chief Operating Officer, Uber, who is on a four-day tour of the country, said. He, however, did not share any more details on the investment. India is already among the top three markets for Uber.
Mr. Harford added that the firm’s recent merger with Grab in South East Asia has “freed up resources which we are going to invest across people, products and partnerships that can better serve this country and the cities that we operate in.”
Last month, Uber announced a deal to sell its Southeast Asian operations to rival Grab for a 27.5% stake in the combined entity. Prior to the Grab deal, Uber exited two markets — China and Russia.
Replying to a query on merger talks with rival Ola in India, Mr. Harford, who took charge as Uber COO in December last year, said the company had “no interest in doing a minority deal”, but was always open to discussions.
There have been reports about Uber and its rival firm Ola joining forces in the Indian market for some time. Both firms are backed by the same investor Softbank Group. The U.S.-based firm on Wednesday released a report by BCG, which Uber had commissioned.
High congestion level
According to the report, the level of congestion is significantly higher in Indian cities than comparable cities around Asia, averaging 149%.
This means that, on an average, commuters take 1.5 times longer to travel a given distance.
“This is currently estimated to cost just the four Indian cities [Delhi, Mumbai, Kolkata and Bengaluru] over $22 billion per year,” the study said.
The report added that ride-sharing could reduce congestion by 17-31%, by reducing private cars, increasing vehicle utilisation, improving public transport adoption and optimising infrastructure planning.
