Hero MotoCorp, Uber in talks for strategic alliance
India's largest two-wheeler company Hero MotoCorp led by Pawan Munjal is exploring opportunities for a potential strategic alliance or tie-up with leading cab aggregator firm and the world's most valuable startup Uber, aimed at the Indian two-wheeler taxi market, multiple industry sources familar with ongoing negotiations told ET NOW on the condition of anonymity. ET NOW was the first to report the development.
"Things are at a very early stage and the plan is to look at jointly tapping the growing opportunities in the nascent domestic two-wheeler taxi market in India. Currently, the discussions between both parties are preliminary in nature and may not necessarily result in a strategic alliance or tie-up," added one of the sources cited above.
"Uber and Ola have attempted an entry in the domestic two-wheeler taxi market but have faced hurdles in different markets. Different states have different rules and regulations, including licensing obligations for commercial usage under the Motor Vehicles Act. But the synergies of a potential alliance between Hero MotoCorp and Uber are tremendous in terms of a fillip to market share & sales," added another industry source.
Hero MotoCorp Chairman and CEO Pawan Munjal has invested in his personal capacity in bike-taxi firm Rapido and had recently spoken about the possibility of Über in two-whelers and was quoted as saying, "Nobody has talked about the Uber in two-wheelers, the two-wheeler taxis. This is something to ponder upon."
Munjal has also highlighted the growing trend of electric vehicles & ride sharing in the past.
In response to an email query from ET NOW, a Hero MotoCorp spokesperson said,"We would not like to comment on market speculation." ET NOW is awaiting an email response from Uber.
"Things are at a very early stage and the plan is to look at jointly tapping the growing opportunities in the nascent domestic two-wheeler taxi market in India. Currently, the discussions between both parties are preliminary in nature and may not necessarily result in a strategic alliance or tie-up," added one of the sources cited above.
"Uber and Ola have attempted an entry in the domestic two-wheeler taxi market but have faced hurdles in different markets. Different states have different rules and regulations, including licensing obligations for commercial usage under the Motor Vehicles Act. But the synergies of a potential alliance between Hero MotoCorp and Uber are tremendous in terms of a fillip to market share & sales," added another industry source.
Hero MotoCorp Chairman and CEO Pawan Munjal has invested in his personal capacity in bike-taxi firm Rapido and had recently spoken about the possibility of Über in two-whelers and was quoted as saying, "Nobody has talked about the Uber in two-wheelers, the two-wheeler taxis. This is something to ponder upon."
Munjal has also highlighted the growing trend of electric vehicles & ride sharing in the past.
In response to an email query from ET NOW, a Hero MotoCorp spokesperson said,"We would not like to comment on market speculation." ET NOW is awaiting an email response from Uber.
