MUMBAI // Uber is stepping up efforts to compete with Indian rival Ola, as it expands its motorcycle taxi service in India.
The US-based ride-hailing app is focusing on India as a key market for expansion. Ola, which is based in the southern city of Bangalore, has the largest market share in the ride app-based taxi aggregator sector in India.
Uber announced plans on Tuesday to launch its motorbike taxi service, called UberMoto, in Hyderabad next month.
“Our goal is to provide our riders another choice for quick, reliable and affordable transportation, and to … reduce traffic congestion,” said Travis Kalanick, the founder and chief executive of Uber, who was in India last week to make the announcement.
The company already offers bike services in Gurgaon, a satellite city of New Delhi. It also launched motorcycle taxis in Bangalore earlier this year, but was forced to halt the service after local authorities said that it had not obtained the necessary permits and started impounding the motorcycles.
Ola, which also offers motorbike taxis, had to stop its bike service in Bangalore too.
Uber and Ola, in addition, offer the facility to book auto rickshaws through their apps, as they try to compete across a range of vehicle categories.
Uber last year highlighted its plans to invest US$1 billion in India over a nine-month period. Saudi Arabia’s sovereign wealth fund Public Investment Fund invested $3.5bn in Uber this year, which is helping its aggressive expansion in India.
Uber also offers motorbike taxis in Indonesia and Vietnam. It had to stop its motorcycle service launched in Thailand earlier this year after clashes with local authorities.
But in Hyderabad, Uber appears to have significant support from the state government.
“Uber has added another feather in our partnership by launching UberMoto,” said K T Rao, the minister for IT and industries and commerce of Telangana state, of which Hyderabad is the capital city.
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