
During his visit to India and participation in a Bangalore conference, Uber’s CEO Dara Khosrowshahi discussed the significant challenges the ride-sharing firm faces in the Indian market. He acknowledged that Indian consumers have high expectations for quality service but are hesitant to pay for it. Khosrowshahi described India as one of the toughest markets, stating that if Uber can succeed there, it can succeed anywhere.
In a conversation with Infosys co-founder Nandan Nilekani, Khosrowshahi highlighted Uber’s focus on enhancing the quality of its economical services in response to the demanding Indian market. He also hinted at Uber’s plans to expand its services in the two-wheeler and three-wheeler segments, recognizing India’s ongoing development of digital public infrastructure.
Tough Market Conditions
Khosrowshahi emphasized that India is one of the toughest markets due to demanding consumers who prefer not to pay for services. Uber plans to concentrate on strengthening its low-cost service segments to address the challenges in the Indian market.
Given the spending habits of Indian consumers, Uber aims to expand its two-wheeler and three-wheeler services in the country. Khosrowshahi praised India’s digital public infrastructure and its ongoing development.
Coping with Pandemic Losses
Khosrowshahi admitted that Uber faced difficulties adapting to the COVID pandemic, resulting in a loss of approximately $3 billion in net profits. To support its delivery services, Uber had to utilize its mobility sector.
Partnership with ONDC
Uber has also entered into an agreement with ONDC, a government-supported initiative, to address the mobility requirements of all Indians. Prabhjeet Singh, Uber India and South Asia President, expressed their vision to make Uber a platform for every Indian’s daily mobility needs, aligning with ONDC’s aim to democratize digital commerce.