Uber plans to increase its investment in India by “significantly” expanding the number of cities in which it operates and pushing for better regulation of the online cab industry as the US-based taxi app tries to catch up with cut-price local rivals, the new president of Uber India has said.
Amit Jain has been appointed as Uber's first country head, marking a shift in strategy for the ride-hailing company which has relied on city-by-city management teams.
The Indian appointment is set to be followed by a second country head position in China, according to a source, underlining the importance of Asia’s two largest emerging economies to its future growth.
Although Uber already operates in 11 cities in India – making it the company’s largest market by locations as well as its second largest by users – Mr Jain said he planned to expand the business rapidly in the second half of this year.
“The pace of launching new cities is going to increase,” he said. “We are nowhere near the potential that exists.”
The move comes as Uber hopes to make up ground against Ola, a domestic rival with a much larger presence in the country. Ola operates in 100 Indian cities and recently completed a $400 million funding round at a valuation of $2.4 billion, led by Tiger Global, a US-based investment group.
Growth in India is important for Uber’s credibility with investors, as it tries to avoid repeating its predicament in China, where it now controls only a tiny fraction of the market, having largely lost out to local budget players.
Mr Jain refused to comment on Uber’s finances, but said he planned a push to recruit drivers and increase brand awareness in a taxi app market that analysts say will be worth $5 billion by 2020.
He said he would begin intensive negotiations with regulators over the coming months to try and find a “long-term solution” to the lack of a legal framework allowing online taxi hailing in India.
Uber’s India operation has been also hampered by political regulations and a temporary ban in New Delhi last year, after a driver allegedly sexually assaulted a female passenger. – Copyright The Financial Times Limited 2015
