Uber partners with India's ONDC to expand mobility offerings
Uber has partnered with India's Open Network for Digital Commerce (ONDC) to explore new mobility options on the Uber app. Uber CEO Dara Khosrowshahi praised India's Digital Public Infrastructure (DPI) for its scale and ambition, suggesting that other countries could learn from it. However, he acknowledged India as "one of the toughest markets out there" due to high customer expectations and low spending. Despite these challenges, Khosrowshahi remains optimistic about Uber's growth in India.
ONDC partnership can make Uber rides affordable
Prabhjeet Singh, President of Uber India and South Asia, believes this collaboration will help provide safe, affordable, and reliable rides. Meanwhile ONDC's CEO, T Koshy, also sees this as a significant step toward diverse mobility solutions in the country. Introduced in 2021, ONDC is a government initiative which is supported by private partners. It is an open, e-commerce protocol that lets buyers and sellers interact directly, resulting in better profits for companies and lower prices for consumers.
Expansion plans for low-cost services in India
Khosrowshahi also shared plans to expand Uber's low-cost services in India, focusing on two-wheeler and three-wheeler options. He believes these affordable products offer significant strategic opportunities for the company. Additionally, Uber is considering entering the bus transportation sector in some countries. However, the company has not revealed any plans to offer bus service in India.
Post-pandemic changes and financial growth
In response to the COVID-19 pandemic, Uber made tough choices including layoffs. Khosrowshahi mentioned shifting focus from consumers to drivers by offering more incentives. This change helped Uber achieve its first annual net profit since going public in 2019, with a free cash flow of $3.4 billion in 2023, which was significantly higher than $390 million in 2022. In January, Uber India reported consolidated revenue of Rs. 2,666 crore in FY23, driven by increased revenue from rides and supported services.