Uber, the cab-sharing app has been making it big globally. And it seems that it has found its 2nd highest user market. The Uber market in India has been growing rapidly. With the recent launch of Uber services into 7 Indian cities, India now ranks second in using the online cab services.
This, however, comes with a long list of regulatory hurdles that Uber fleets have been facing in India. Ever since its launch, the Uber market in India has been in a tumult. Incidences like the rape of a Uber passenger by the driver in Delhi, and regularly organized strikes by commercial passenger vehicles have been a major bottleneck for the online car services company.
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Current achievements in the Indian market
In spite of these hurdles, the launch of Uber services in seven more cities makes the Uber market in India the second largest in the world. USA is currently the leading country using Uber services. In India, Uber operates in 18 cities making it a great market.
The Uber fleet has grown considerably into a huge number. The city of Delhi alone has over 10,000 cabs operating under Uber. This is evident enough about the huge number of cabs operating under the cab sharing app.
Elsewhere in the Asian market
Uber recently also made huge business in the Chinese market as well. And to keep the business running Uber has made a significant investment to help grow the business in the Indian and Chinese market.
Uber’s Indian competitors
Uber’s Indian competitors Ola and Meru have cab-hailing services spread over 200 cities. However, the fleet under Ola and Meru is rather small as compared to the huge fleet of Uber. If you take the capital city as example, while Uber has around 10,000 cabs under it, Ola’s fleet in New Delhi is just 8000. Thus the small fleet has been a major reason for Indian cab services failing to beat Uber in their home-turf.
Uber has already appointed a president for its Indian market. According to Neeraj Singhal, who has been the incharge of the expansion of the Uber market in India said, “Our data already shows that residents and visitors in each of these new cities have been eagerly waiting for Uber for sometime now and we expect to see a similar response here.”
Uber seems to understand the low cost Indian market, for apart from introducing low cost passenger vehicles, Uber has also launched auto-rickshaws under Uber services. This service is at present available only in a few selected cities in India.
The introduction of low-cost rides seems to be an attempt on the part of Uber to penetrate and grow the Uber market in India. Though the market for ride-sharing app has increased considerably in India, still a large part of it is not using the app. The main reason has been e-payment and payment through mobile wallets with which the Indian customers are still uncomfortable. A section of these prospective customers prefer payment through cash and this has been one of the main reasons for its relatively slow growth. Though Uber has introduced a cash payment option, it is still on trial basis.