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.