2024-10-24 06:10:22 :
The San Francisco-based company also claims that 3%, or 30,000 of its taxi fleet, including sedans, bikes and cars, are electric, making it the ride-hailing platform with the largest electric fleet in the United States.
“We have made significant progress in the last two to three years. Today, two-wheelers and three-wheelers do more trips than four-wheelers. I would say there are slightly more two-wheelers and three-wheelers than 500,000. “Keep in mind that the longest part of our business has always been vehicle-based services. “Prabhjeet Singh, president of Uber India and South Asia, said in an interview. Mint.
“These (bikes and cars) tend to be lower-priced products. (Yet) they are one of the fastest-growing parts of our business. Our core ride-hailing business is growing in the mid-20s every year, and this segment The market (bike taxis and cars) is growing much faster, so if more than half of the trips are on two-wheelers and three-wheelers, about a third of the revenue will come from these categories.”
More two wheelers, cars
Uber started operating in the country in 2013, launched its two-wheeler service Uber Moto in 2016, and started offering three-wheelers two years later. However, the platform has seen significant jumps over the past two years.
Bikes and cars are cheaper to own than buying a car, which is one of the reasons why more and more people are looking to join ride-hailing apps like Uber. However, the rapid growth in the two-wheeler and three-wheeler segment could also be due to the working class’s focus on end-to-end transportation as more and more cities see increased connectivity via metro lines.
“Bike taxis and cars are preferred for short-distance commuting. In cities like Mumbai or Bengaluru, getting a car alone is difficult if you plan to travel short distances. Here, apps like Uber are useful,” said Neil, Vice President Neil Shah, Partner, Counterpoint Technology Market Research. “As metro networks expand in major cities, people see car and bike taxis as preferred options for commuting from their workplace to a metro station and then from their office to a metro station.”
Back to food delivery?
Counterpoint Technology’s Shah believes that Uber may once again enter the food delivery space, as the company may want to optimize the use of bike taxis during off-peak hours.
At present, Uber’s focus remains on mobility and ensuring that it continues to provide users with efficient and reliable transportation services.
“Today, two-wheeler drivers provide mobility services. Many times, they also deliver parcels. We already offer a work package product and drivers like this because they tend to find more parcels delivered during certain times of the day The demand currently, we are very focused on the low penetration of the two-wheeler ride-hailing business itself, (but) never give up on other opportunities,” Singh said.
In 2020, Uber sold Uber Eats to Zomato for $206 million as part of a restructuring by CEO Dara Khosrowshahi He took office in September 2017 to turn around the company. As part of the deal, Uber also acquired 9.99% stake in Zomato. As of the end of August 2022, Uber sold its entire stake in Zomato for $376 million.
As of Wednesday’s close, Zomato’s market capitalization was $27.7 billion.
Selling Zomato Shares
Singh’s views on selling Uber’s stake in Zomato are philosophical. “Hindsight is always 20-20. I think you can always look back at multiple instances where you could have done things differently. But the idea was not to dwell on that. I think at the time, we had to accept that the investment Combining calls when we had to as part of a global strategy, Dara made decisive decisions when it made sense for the business,” said Singh.
Uber’s 9.99% stake in Zomato is worth $2.7 billion. By the end of August 2022, it sold for $376 million.
Singh joined Uber in 2015 and became president of South Asia in July 2020, which includes operations in India, Sri Lanka and Bangladesh. He insists that Uber is the largest ride-hailing app in the country.
Safety first
Currently, safety remains at the core of Uber’s development. The company claims it is the only ride-hailing app that uses a third party for background verification before drivers join its app.
“We implement a rigorous vetting process for all drivers before becoming a driver partner, starting with comprehensive background verification and strict onboarding requirements,” a Blusmart spokesperson said. “This includes verification of personal identification documents, independent third-party Background checks to conduct criminal record and address verification, as well as obtain a no-objection certificate from the State Police, and drivers must pass a driving test, undergo conduct and competency checks, and complete safety protocol training.”
An email sent to Ola Cabs seeking comment did not elicit a reply.
Uber, which went public in 2019, has revenue of US$37.3 billion for the fiscal year ending in December 2023. In its most recent quarter, Uber reported revenue of $10.7 billion and profit of $1 billion from April to June.
Uber did not disclose financial results in the countries in which it operates, other than to say that Brazil and India were the company’s second- and third-largest markets.
Invest in the future
“I can choose to be profitable tomorrow. But as Dara mentioned during his visit to India earlier this year, the option is that we invest part of the profits generated in the portfolio in new categories,” Singh said.
On extending social security to over 1 million drivers, who are not company employees but gig workers, Singh said companies are waiting for the government to implement social security regulations for gig workers.
“I would say that the Social Security Act passed by Parliament two years ago is a landmark, groundbreaking bill that should become the gold standard for every gig economy around the world. Unfortunately, it has yet to be notified and implemented. We at Uber are advocating I can tell you that within one hour of notification, we will deliver on our commitment to the code,” Singh said.
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