Uber Plans to Merge with Indian Railways to Expand its Services
India: By expanding its focus on around
a million people, traveling via train in India, the company has approached Indian
Railways with different proposals, including its services’ integration through
app and website, for carrying passengers from stations across various cities.
As per the officials, the
anticipated deal between Indian Railways and Uber, is expected to generate a
revenue of about USD22.43 million, annually, for the railways, through
commissions earned on cab booking and by leasing premium space to Uber for pick
& drop at the stations.
The Indian Railways comprises
of 12,000 trains which carries more than 23 million passengers per day and is
connected to almost 8,000 stations across the country. Moreover, the arm of the
Indian Railways, i.e. Indian Railway Catering & Tourism Corporation Ltd
(IRCTC), is managing, online services of railways. The IRCTC website allows the
passengers to book hotels, cabs and buses, wherein, it generates over USD3
billion revenue per year.
Under the proposal, Uber
plans to setup kiosk at the stations for assisting passengers in booking cabs
for pick & drop along with providing technological upgradation to the
Indian Railways app. As per the rail board official, the number of stations are
not decided by the company, so far. Moreover, the official also stated that
Indian Railways were considering for implementing the proposal and a decision
is expected to be taken, soon.
As per TechSci Research, Uber
is among leading players in the India radio taxi service market. Moreover, the
company has been infusing a vast investment in the country, after selling its
business operation of China to its competitor. By merging with Indian Railways,
the company is expected to expand its business across the region, to a next
level, which would benefit Uber as well as the Indian Railways.
According to a recent report
published by TechSci Research, “India
Radio Taxi Services Market Forecast &
Opportunities, 2021”,
rising demand for radio taxi services in India can be attributed to changing
lifestyles of travelers and increasing disposable income. Moreover, radio taxis
offer hassle free travel experience to customers. Further, growing inclination
of customers towards radio taxis can be attributed to various tangible and
intangible offerings such as booking convenience through mobile applications,
air conditioning, educated and skilled drivers and operators, multiple payment
options, 24×7 customer support, electronic fare meters, GPS enabled vehicles,
etc.