The cab hailing service Uber is looking for a massive expansion of its fleet in India. India is the second largest internet market after the US, so Uber is looking to have a major chunk of the app-based cab market by introducing as many as 2 lakh cabs.
Both Maruti Suzuki and Tata Motors have signed pact with Uber that allow both companies to be used for vehicle purchase, financing solutions, driver programmes etc. Both of the companies are likely to receive heavy orders for the expansion. Uber has decided to focus aggressively on the Indian market after they have sold their China operations to the China based company Didi Chuxing. The Indian automotive industry is likely to get a much needed boost, with the largest ever vehicle purchase by a single buyer if this plan materialize.
All the vehicle purchase is likely to be made by Uber’s leasing unit named, Xchange leasing. Uber India is looking to empower a million of people by 2018 under their UberShaan programme. According to the Head of leasing Uber India one can expect one out of every five new drivers would be on the platform with the help of this leasing programme.
Currently Uber has various Tata cars in its portfolio such as Indigo CS, Indica hatchback, Bolt and Tata Manza, all these cars are mostly popular in the commercial segment rather than the private segment. If this plan materializes, then it would be a blessing at least for Tata, as their sales chart is going down day by day. Maruti cars such as Dzire, Swift, Alto 800, Ritz, Wagon R and Celerio are also used by the cab company and with this deal the sales of Maruti Suzuki is also likely to get a massive boost.
Recently Uber is not letting any stones unturned to capture the Indian market with its services. With new features like 30 days advanced booking facility, option to book through call or website in addition to the app, Uber is fastly dominating the market. Now, when they are looking to add up 2 lakh cars, it would not only expand their business, but would also bring employment for more people.