India ranks 2nd in global cab service market: Uber

India ranks second, next only to China, in the international cab service market.

Sharath Chowdary

India stands second in the global taxi service market. This was revealed by Uber Asia Head of Business, Eric Alexander, when speaking to the media at an event organised in Hyderabad on Thursday.

“The country ranks second, next only to China, in the international cab service market. Compared to other countries, we see faster growth in India. That is why we are investing heavily in this country,” he said speaking to The Dollar Business Bureau.

Last year, Uber had committed to invest $1 billion for expansion in India. This year in February, it opened a Centre of Excellence (CoE) in Hyderabad as a part of its commitment to invest $50 million in Telangana. In March, the company has inaugurated an Engineering Centre in Bengaluru as it has committed to invest Rs.99 crore in the state of Karnataka.

Elaborating on the future plans of the company, Alexander said that Uber is already operating in 27 cities and seeks to expand in 50 cities by the year-end. The US-based taxi aggregator has partnered with Tata companies to introduce a new programme to enable more than 20,000 drivers across India to turn entrepreneurs. Under this partnership, owners and drivers can buy Tata-manufactured cars on ‘flexible-customised-financing-solutions’ from Tata Capital Financial Services and Tata Motors Finance besides having the choice to avail affordable insurance from Tata AIG.

Speaking at the event, Tata Sons Group Head for business development and public affairs, member-group executive council, Madhu Kannan said, "A unique strength of the Tata group is that it can provide convergent solutions, meeting multiple requirements of its customers, and this partnership is a distinctive example of this strength. We are delighted to take our relationship with Uber forward, leveraging its technology expertise and Tata companies' capabilities and reach."

Last year, Tata Opportunity Fund had invested in Uber and now we are partnering with them to enable 20,000 drivers to become entrepreneurs. Rolled out first in Hyderabad, the programme will be taken further to other cities to encourage entrepreneurship among Uber drivers across the country, he added.

Eric Alexander (R) taking selfie with Telangana IT Secretary Jayesh Ranjan (C) and Madhu Kannan in Hyderabad on Thursday.

The Dollar Business Bureau - Jun 16, 2016 12:00 IST