Uber will spend $1 billion to grow presence in India
On-demand transportation company Uber will spend $1 billion over the next nine months in India to expand its presence in one of its biggest global markets, the San Francisco company announced Friday.
The company currently operates in 18 cities in India and offers services unique to the market, such as UberGO (on-demand hatchback vehicles) and UberAUTO (which supports cash payments).
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“India is one of Uber’s big priorities, along with China and UberPOOL,†Amit Jain, president of Uber India, said in a prepared statement. “With this investment and the strong rate of growth we are seeing, we expect to hit over 1 million trips per day in the next six to nine months.â€
Despite its rapid growth in Asia, Uber has hit roadblocks in India, with the New Delhi state government banning the ride-hailing service in December after an Uber driver was accused of sexually assaulting a passenger in the Indian capital. The government also accused the company of “misleading†customers because it did not have the required permits to operate a taxi service in the capital region.
In neighboring China, Uber is making a similarly large financial investment, with Uber Chief Executive Travis Kalanick recently revealing in a memo to investors that the company planned to invest $1 billion to grow its presence in China.
Twitter: @traceylien
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