Uber Technologies Inc UBER is accelerating its expansion into India’s market for two- and three-wheeled rides, intensifying its competition with local rival Ola.
CEO Dara Khosrowshahi discussed experimenting with scooter and motorbike services in India, describing it as Uber’s “toughest market.” This strategy could serve as a blueprint for Uber’s growth in other countries.
During his visit to Bangalore, Khosrowshahi, who visits India infrequently, engaged in a public conversation with Infosys Ltd’s INFY co-founder Nandan Nilekani, hinting at exploring bus services, Bloomberg reports.
Having recently achieved its first annual profit, Uber views India as a crucial market, especially after withdrawing from China and Southeast Asia.
Uber and Ola face challenges in securing consistent profits in India, a market known for its rapid growth but sensitive pricing.
The visit also highlighted Uber’s memorandum of understanding with the Open Network for Digital Commerce (ONDC), a government-supported initiative to standardize online transactions and finance.
Prior reports indicated that the value of digital payments in India will increase threefold from the current $3 trillion in 2022 to $10 trillion by 2026.
In February, Uber reported fourth-quarter results, clocking a revenue growth of 15% year-on-year to $9.94 billion, beating the consensus of $9.76 billion.
Trips grew 24% year-over-year to 2.60 billion, or 28 million per day.
Price Action: UBER shares traded higher by 3.52% at $79.13 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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