How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz

How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz

SUMMARY

Uber has restructured its corporate holdings and brought its India business

It is to be noted that earlier rides and food delivery business were earlier part of Uber BV in Netherlands

The restructured business operations went live on October 1

NASDAQ-listed cab-hailing giant Uber is getting its Indian businesses in order.

An ET report, citing sources, said that Uber has restructured its corporate holdings and brought its India business, including food delivery, under Uber India Systems.

It is to be noted that earlier rides and food delivery businesses were a part of Uber BV, a private limited liability company registered in the Netherlands. As a result, its agreements with restaurants and payouts were routed through the Netherlands entity. However, all these functionings are now being moved to India.

The report added that the rides business will also be invoiced out of India going forward. It said that the restructured business operations went live on October 1.

Notably, the external entity fared well for Uber as it was exempted from dual taxation because of a tax treaty between India and the Netherlands. With the shift in the base to India, Uber’s operations are expected to become legally sound.

Further, the development comes with a reshuffle at the company level as well. The report added that two top UberEats executives – India chief Bhavik Rathod and head of central operations Deepak Reddy have resigned. Uber spokesperson reportedly said, “After six memorable years with Uber…Bhavik Rathod has decided to pursue his entrepreneurial dream…and will be leaving Uber in October.”

During the interim period, Raj Beri, the head of Uber Eats APAC and EMEA, will manage UberEats India. Further, it is to be noted that Uber has been facing a tough time in its Indian operations.

The company’s attempt to sell UberEats to existing players such as Swiggy and Amazon hasn’t worked out yet. Further, India’s ride-hailing industry is witnessing sluggish growth, averaging 3.65 Mn rides daily, a 4% increase over last year.

The report added that Uber CEO Dara Khosrowshahi is set to visit India later this month. On a global level, Uber reported a loss of $5.2 Bn in the second quarter of 2019, as compared to $3.7 Bn in the Q1 of 2019. The company attributed this loss to $298 Mn spent on driver appreciation award offered in connection with the company’s initial public offering, along with its $3.9 Bn spendings towards stock-based compensation expenses.

Uber’s rival, Ola, is now looking to go public. As the competition intensifies, Uber’s upcoming moves will be interesting to see.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz-Inc42 Media
How Uber Is Consolidating Indian Ride Hailing, Food Delivery Biz-Inc42 Media
You’re in Good company