Uber To Take On Porter With Expansion Of Courier Service For Large Deliveries

Mobility major Uber has announced the expansion of its courier service Uber Courier with the launch of Courier XL in India to deliver large goods.

In a statement, Uber said that the Courier XL service has been launched in Delhi NCR and Mumbai. The company plans to launch the services in more cities of the country in the coming months.

Uber will use three-wheeler and four-wheeler goods carriers to deliver large packages of up to 750 kg through Courier XL.

“Courier XL is our answer to a growing demand from users – especially small businesses and households – who need a reliable way to move heavier goods across the city,” said Shiva Shailendran, director – consumer and growth at Uber India and South Asia.

With this expansion, Uber will now directly compete with Porter, which recently attained unicorn status when it raised $200 Mn from Kedaara Capital and Wellington Management at a valuation of $1.1 Bn to $1.2 Bn.

Uber Looking To Expand Revenue Stream

Uber launched its courier service in India in 2020 and has expanded it to 25 cities since then. Till now, the company delivered packages using two-wheelers. Uber said that the courier service saw a 50% year-on-year (YoY) growth in 2024.

The high demand of the service in Delhi NCR and Mumbai is the reason behind Uber launching Courier XL in these cities. While the average distance for courier deliveries in 2024 was 11 km, Uber said that the average distance for Delhi NCR and Mumbai was 14 km and 12 km, respectively.

With the launch of the new service, the company is looking to grab a pie of the fast-expanding Indian logistics market to grow its top line. As per a report by Imarc Group, India’s logistics market is projected to reach a size of $428.7 Bn by 2033.

The ride-hailing giant has been on a spree of new launches to further strengthen its position in the Indian mobility market. Earlier this year, it launched Uber Teens to cater to the needs of those between 13-17 years. Besides, it also introduced a zero commission model for auto drivers earlier this year.

On the financial front, Uber India’s operating revenue grew 41% to INR 3,761 Cr in FY24 from INR 2,666 Cr in the previous fiscal year, as per its standalone financial statement sourced from Tofler. The company managed to narrow its loss by 71% to INR 89 Cr during the year under review from INR 311 Cr in FY23.