Uber devotes an extra $1 billion to ramp up India operations
Uber has confirmed that it has earmarked another $ 1 billion for the Indian market and is confident that there will be one million Uber rides a day in India within the next six to nine months.
The statement said the money will be used to “improve our operations, expand into newer cities, develop new products as well as payment solutions, and establish a great support network.”
The business is growing by 40% month-on-month in India and believes that the additional investment will lead to even higher rates, prompting its prediction that it is only a matter of time before it handles more than one million trips a day.
Uber has only been operating in India for less than two years, starting operations in Bangalore, India’s Silicon Valley in October 2013. It now operates in eighteen cities, although 80% of its business comes from its five biggest markets.
Payments have been an issue for Uber in India – it was in trouble late last year for allegedly contravening India’s banking rules, but a link up with Paytm allayed the regulators’ concerns.
Earlier this month it got the all-clear from the same regulators to take credit cards and added the option to its Android app, and has also rolled out cash payments as an option in five cities.
Elsewhere, one of its biggest rivals in India – Ola – has announced that it now an app-only business. In a statement Ola explained that within the past year the proportion of bookings coming through the app has increased from 50% to 99%.
Ola’s move puts it at the heart of interesting m-commerce dynamic currently at play in India between apps and the mobile web. The debate became front-of-mind when fashion retailer Myntra became app-only.
But the mobile web still has its place – OTA Cleartrip has recently committed to and upgraded its mobile web site and is seeing 16% of room-nights booked coming through the channel.http://www.hotelglobe.net/uber-devotes-an-extra-1-billion-to-ramp-up-india-operations/Best Hotels