Uber plans to buy 200,000 cabs, major expansion on cards.
Major expansion is on the cards for Uber in India, and this comes as the best news for the automobile industry as the cab hailing venture is planning to buy as many as 200,000 passanger vehicles. The process will happen over the next two years and the vehicles will be leased out to drivers who want to join its cab-hailing platform. This largest ever vehicle purchase by a single buyer in India, is being said to be a part of Uber’s programme to help driver-partners acquire their own cabs by arranging finance and negotiating deals with automakers.
The vehicles will be purchased by Uber’s leasing unit, Xchange Leasing. Maruti Suzuki and Tata are likely to gain the most as the San Francisco-based company already has pacts with the two for driver skilling programmes, vehicle purchase and finance solutions. The deal could translate into 13,000 Crore of money, that Maruti and Tata could make out of this.
Raj Beri heads the leasing department at Uber India, he said in a statement:
“We aim to empower a million driver-partners by 2018 under our UberSHAAN initiative and expect that potentially one out of five new drivers would be on the platform through our leasing programme,”
Uber currently has 400,000 drivers on the platform. Rival Ola has also recently signed a deal, potentially worth Rs 2,600 crore, with M&M to purchase 40,000 vehicles in two years for its driver-partners. Uber is going the extra mile at every single step, to make the most of every opportunity, after being ousted by Didi Chuxing in China. Uber’s operations in India account for 12% of its global market share. But in India, the company faces a tough competition with rival Ola which is backed by SoftBank.