Uber has announced that it has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government to create thousands of work and entrepreneurship opportunities, foster technical innovation and support development in the state.
Uber says the deal will enable it to create over 30,000 “entrepreneurial opportunities” for drivers, as well as an opportunity to work with the government to together develop programs to improve technology as part of the region’s economic development. It will include training programs, building infrastructure and working on public-private partnerships around R&D.
Amit Jain, President of Uber India, stated, “Uber is pleased to announce our landmark partnership agreement with the Government of Tamil Nadu to drive innovation, create tens of thousands of entrepreneurship opportunities, and provide safe, reliable transport options for people of this state. “We are deeply committed to the local communities in which we operate, and look forward to leveraging our global expertise to deliver new solutions to make Chennai a city of the future.”
The company claims that Tamil Nadu & four other big metropolitan areas in India makes up 80% of its business in India. So, with this deal, it will be great to see how this business model turns out. The move follows its announcement made a couple of months back, wherein Uber had declared that it would invest over $50 Mn in the next five years to set up a new office in the southern Indian tech hub of Hyderabad, housing about 500 employees in the next five years
The company has also been testing out other initiatives such as cash payments considering that payment card penetration in India is lower as compared to the developed markets where Uber operates.The company is also planning to come up with its own mobile payment wallet in the country. .
India being the second largest and fastest growing market for Uber globally, it is investing significant resources into this market’s continued growth as the number of taxi service providers, especially in metros which have seen a phenomenal growth in the past couple of years.
It will be pumping in about $1 Bn in the next nine months exclusively in the Indian market. The online cab company will expand into newer cities and to develop new payment solutions as well. It recently expanded its services to four new Indian cities, totalling it to 22 cities
Meanwhile in a significant first, Uber’s biggest rival Ola recently has already unleashed its potent weapon. Earlier this week, Ola announced the launch of Ola Shuttle – a service to offer shuttle bus service to urban commuters for as low as under $1 (INR 66). Passengers can use the app to scan and track shuttles on the map, book their seats and make payment.
