Uber stalls India leasing scheme

New Delhi, March 24 

Global ride-hailing firm Uber Technologies is rethinking its car leasing strategy in India, its second-biggest market, as drivers have returned dozens of leased cars early after the company cut incentives, people familiar with the matter said.

Uber had planned to buy 15,000 new cars last year and lease them out in a bid to attract more drivers — a strategy it has used in other markets — but it suspended the scheme for a while in December after leasing just a third of that total.

After burning through millions of dollars over three years in a battle for market share with local rival Ola, backed by Japan’s Softbank, Uber has cut the incentives it gives to drivers and raised the fares it charges passengers. Those incentive payments have been pared back, in some cases to as little as 10% of fare income. — Reuters