Uber Plans To Invest $1 Billion In India
Uber Plans to Invest $1 Billion in India – Whether there is Great Demand for the Taxi Hailing Services in India. Uber the taxi hailing app plans to expand its services in many countries. The main motto of the company is to have a wide range of business. It has gained huge popularity in the US, and it plans to do the same in other countries also.Uber plans to invest $1 billion in India, to expand its business in the country. The company feels that the Uber’s business in India is slowly improving day by day; its business had improved about 40% and it is gradually improving month over month. The company believes that by investing this amount, the company will show more improvement than this.
The company plans to invest $1 billion for the 9 months, in order to improve the products, start the business in new cities and to expand its operations. The president of Uber India, Mr. Amit Jain, said that, with this huge investment and by this current improvement, Uber will have up to 1 million trips daily within six to nine months.
Uber has started its business, in India since 2013, within these three years it had expanded its business in 18 cities. The US based company has launched some exiting features of the Indian products, which includes the low cost ride and a new payment option.
Though Uber has a gradual improving rate in India, there are some factors which still have a threat in app based taxi services. The reasons are as follows.
First reason is that, due the heavy traffic in the city, private drivers are costing high fares for the rides. So this has resulted in owning the private cars.
The second reason is that, autos and kaali- peelis have filled the need of public transport apart from the buses, trains and the suburban train services. They have become friendly for the people who go to work in other places.
And the issue of women’s safety, Last year the woman passenger was raped by the Uber driver.
Although it has some issues, its services are attracted by some users. Let’s take a look at the positive points about Uber.
The taxis and the autos serve well to the customers, but they often refuse to go the place where the customer wants to go. But Uber drivers will not refuse the trip at any cost, because they don’t have the right to say no to the customer.
Some app based taxi drivers say no to the customers in some rare cases, but Uber will not do it at any cost. It is cheaper that the traditional taxis in India. It undercuts the prices, in order to have more customers.
It has the proper billing mechanism. The amount will be taken from the account which you have registered with the Uber, when you reach the destination, and it will be intimated to the customer. Some app based taxi services have the cash payment options also.
As per the Indian customer requests, the app bases taxi services have changed the payment options to offline and online, that is they can pay through the credit card or as the cash payment. And also they have changed the booking options also; they have both the current and the future bookings. At the time of high demand, the customers can book the taxis in advance.
Surge pricing should be reduced by Uber, because customers want a taxi that costs at the same rate in all situations, not the one which costs higher when the demand is high.
Uber’s growth in India
Uber has two lakh customers per day. And it tries to expand its business in the country, as its business is gradually improving in India. The major app based taxi company giants, the Ola, GetmeTaxi and Uber is having a healthy competition in India. Both have invested the massive amounts in Indian market in order to expand their business.
The two companies have been advertising their services in India for the past few years. And they have been saying that the drivers can earn up to Rs.1 lakh per month in their company.
The average income of a driver in India will be Rs.3 lakh, that is, he can earn upto Rs.25, 000 thousand per month. So, this has attracted the Indian drivers and they felt like their dream came true. So the drivers have joined the Uber and Ola. And now they employ a few drivers for their cars and provide them with Rs. 15,000 per month.
An Uber driver says that, his smart phone has both the Uber and Ola installed in his taxi. He saw many people have registered for both; he got inspiration from those people and started to follow the same, So that their income gets multiplied.
Another driver of Uber said that, he gets up to six trips per day; sometimes he has to keep waiting for the entire day, in order to get a single ride.
An Ola driver said that, he will get Rs.3000 per day from the company, I order to be available all the time. Uber also introduced the same scheme, that the drivers should be available all the time.
One of the drivers of Uber said that, it is easy to drive for the Uber and Ola, because they pay high. And by seeing more Uber and Ola cabs on the roads, he felt that the supply has exceeded the demand.
As the companies are trying to expand their business in India, and they are paying high to the drivers, more private drivers have joined in these sectors. And more money will flow to get a better market share.
In order to expand its business in India, Uber has hired the specialists in the industry. It had hired the three executives in the industry in the past two months. Uber had hired the new arrivals, because it is trying to double its business in India. In order to give the healthy competition to the India based taxi hailing app, Ola.
Apurva Dalal joined Uber recently as the head of the local engineering team at Begaluru. Previously he was the technology chief of urban ladder and Komli. And he also worked for Google in California as well as in India.
Uber has hired Mahesh Bhalla to control over the business development. Previously he was the president of Qwikcilver; it is the digital gift card company. In 2000 to 2014 he worked with Samsung’s India mission. And then he worked with Dell for 10 years, he was the customer director for small business products in India.
Uber also hired Abishek Mahapatra, he joined Uber in July and he heads the communication team of Uber in India. He previously worked with Ford motors, where he worked for the company’s Delhi and Shanghai offices. And he also worked for the Hyundai in 2005.
Uber did not have the smooth journey in India at the beginning. In December 2014, Uber was banned temporarily because an Uber driver has rapped a woman. After that issue Uber introduced the SOS button, the button permits the passengers to inform the police in case of any emergencies. Then Uber’s operations continued in India.
When Uber announced that, it is going to invest $1 billion in India, it received $100 million from the Tata opportunity funds as the funding amount. Uber then merged with the Didi Chuxing. Didi is the leading giant in the Chinese raid hailing services. It may become complicated for the Ola, as Didi Chuxing is also the investor in Ola.