India One Of The Toughest Markets To Crack: Uber CEO Dara Khosrowshahi

Ride-hailing giant Uber’s chief executive officer (CEO) Dara Khosrowshahi has termed India as one of the toughest markets to crack.

Speaking at an event in Bengaluru, Khosrowshahi said Indians do not want to spend much but want a lot of services. 

“Indian customers are so demanding and don’t want to pay for anything. I am so proud of the team. India is the gateway to the world for us (Uber). It has been the toughest market to succeed in. But if we succeed here, it sets the standards for us to succeed in other markets in the world,” said Khosrowshahi.

Despite the challenges, Khosrowshahi said that the ride-hailing major plans to expand its low-cost mobility offerings in the country by focusing on two-wheeler and three-wheeler services. 

He also said that the company will explore more affordable mobility options, including buses in India. He dubbed them as the “single biggest opportunity” for the company in India and other developing countries. The CEO also noted that the company wants to be “available for everybody” and not just be a product for the upper-middle class population. 

Speaking about India’s digital public infrastructure (DPI), Khosrowshahi said Uber is looking to tap into platforms such as the open network for digital commerce (ONDC), UPI, DigiLocker, and Aadhaar to enable seamless mobility services in the country. 

Giving an example, Khosrowshahi said that DigiLocker could be leveraged to enable drivers to join the platform in hours.

He also reportedly said that he is rooting for India’s DPI and the emulation of the model in developing countries as well.

“The DPI of India can become extremely important if we are working towards offering more low cost products like three-wheelers and two-wheelers and the buses that we are planning to build. We are rooting for this model not only in India but especially in developing countries elsewhere,” said Khosrowshahi.

Earlier in the day, the ride-hailing platform signed a pact with ONDC to explore integration with the network and expand its mobility offerings. It is pertinent to note that India continues to be one of the biggest markets for Uber globally. 

However, India operations continue to be fraught with challenges such as razor-thin margins, mounting losses, women safety issues and competition from homegrown Ola. 

Uber India’s consolidated net loss surged 58% year-on-year (YoY) to INR 311.3 Cr in FY23. Operating revenues surged 54.4% YoY to INR 2,666.1 Cr in the year ended March 2023.