Uber bets big on India; plans $1 bn investment

New Delhi, July 31

App-based taxi services Uber said on Friday announced its plans of investing USD 1 billion in the country to meet its targeted one million rides a day over the next 6–9 months.

The proposed investment to expand and improve operations also comes at a time when US-based Uber, which has been embroiled in several controversies — both abroad as well as in India — is facing stiff competition in the country due to the entry of local players, including Ola, which has industrialist Ratan Tata backing it.

 "We are extremely bullish on the Indian market and see tremendous potential here. India is one of Uber's big priorities, along with China and uberPOOL... This is why Uber is committing an additional USD 1 billion (about Rs 6,400 crore) to India in the next nine months," Uber India President Amit Jain said.

The investment would be used to expand and improve operations, expand into newer cities, develop new products as well as payment solutions, and establish a great support network, he said in a statement.

"With this investment and the strong rate of growth we are seeing, we expect to hit over 1 million trips per day in the next six to nine months," he noted.

According to him, India has also become the largest market geographically for Uber outside the US.

However, Uber has been grappling with controversies in recent times. Last December, it faced a temporary ban in the wake of a woman passenger alleging rape by one of its driver.

Recently, there was another allegation of sexual misconduct by an Uber driver.

"We are continuing to see robust 40 per cent growth month-on-month and with more investment in product, hiring, and payment solutions, we expect to grow at an even faster rate," Jain said.

Earlier this month, Uber said it would invest USD 50 million in Hyderabad over the next five years to establish a facility that would be its biggest international office.

The company has recently expanded its services to seven Indian cities, making it the largest geographical market outside the US.

Earlier this year, Uber decided to accept cash payments in Hyderabad, a first in its global operations. — PTI