Uber plans to invest USD500 million by June 2016 in India
India: Radio taxi war between Uber and Ola is about to take a new
folding as global, ride aggregator
app company, Uber planned to invest USD500 million in India by June, 2016 or around
USD170 million every month until June, 2016. Just nine months ago, the world's
most valuable start-up committed to invest USD1 billion in Indian market.
According to Uber founder, Travis Kalanick, the company could surpass the US or
the Chinese market in next couple of months, progressing in Indian market.
Uber
has planned to invest in Indian market and also targets on creating a toughest challenge
for the India’s largest ride aggregator app company, Ola. Both Ola and Uber are
able to gain more than 70% of their revenue from states such as Hyderabad,
Delhi-National Capital Region (NCR), Bengaluru, Chennai and Kolkata. By this
investment, Uber has prepared itself to dominate the market share of Ola, in
top prominent cities of the country.
According
to a senior executive of Uber, the company’s plan is to spend each dollar more
powerfully than our competitors, and has therefore launched technology
solutions specific to India market. Spokesperson added that company has not yet
utilised all the cash from the first USD1 billion commitment.
Over
the past year, Uber has expanded to around 26 cities and has signed multiple
deals with state governments and government bodies. Agreement with government
of Telangana and the automotive skills development council, to create jobs and entrepreneurship
opportunities in the country is some of the recent steps the company has taken.
According to a recently published TechSci Research report, India Radio Taxi Services Market Forecast and Opportunities, 2020, India
radio taxi services market has been witnessing robust growth since last few
years, with tier-I and tier-II cities witnessing vast improvements in their
transportation systems. Due to the plan of investment, ride aggregator app
company Uber has increased its market penetration in India radio taxi service
industry.
TechSci
Research believes that, with the increasing penetration of Uber in India,
domestic cab companies such as Ola, Meru, easy cab, Tab cab, etc. would continue
to witness stiff competition from this global giant.