To register a bigger market share under its name, US based cab aggregator Uber will now offer an option from booking an auto rickshaw from its app.
To register a bigger market share under its name, US based cab aggregator Uber will now offer an option from booking an auto rickshaw from its app.
Uber is re-launching its 'Auto' service in India. The service will be launched again after two yeras of shutting down in March 2016. The cab-hailing service will first open the auto service in Bengaluru and Pune.
If various media reports are to be believed, Uber willgo live with its latest service in the later half of the month of January.
Uber is in a neck and neck competition with home based firm, Ola, which also facilatates booking autorickshaw rides. It started this service in 2014 from Bengaluru and Chennai.
An Uber spokesperson said the company had "paused" the service "to see how that side of India's transport ecosystem evolves". For Uber, India is one of its largest markets where it has seen strong growth.
"Auto rickshaws are ubiquitous to mobility options in many Indian cities. To expand transportation choices for our riders, we are excited to launch Auto in Bengaluru and Pune," Uber's spokesperson said.
In its previous attempt, Uber's Auto offering was available in New Delhi, Coimbatore, Indore and Bhubaneshwar. "We are re-launching Auto starting with two cities", he added.
The spokesperson added that AUTO will include all safety features available for Uber cab rides. The auto riders will be able to pay via cash, Paytm and debit/credit cards.
Ola, which also allows booking autorickshaw rides under 'Auto' service, had launched the offering in Bengaluru and Chennai in 2014. Ola Auto is currently operational across 73 cities with over 1.2 lakh autos associated with the company.
Last year in December, Japanese conglomerate SoftBank will pick up 15 per cent stake in Uber and pump in USD 1 billion as primary investment in the US-based ride-hailing app in early 2018, according to multiple sources.
The fresh capital infusion comes at a time when the company is looking at moving beyond the controversies it was mired in 2017 and further scaling up operations.
Two people close to the developments said SoftBank Group Capital Ltd, a wholly owned subsidiary of SoftBank Group, will hold 15 per cent share in Uber.
The tender offer will also see the remaining members of the consortium picking up about three per cent stake, another official said. The sources declined to be identified as the deal is private. Previously, Uber had entered into an agreement with a consortium led by SoftBank and Dragoneer to explore a potential investment.
When contacted, SoftBank declined to comment on the details but said it is "appreciative of the support from Uber's shareholders in the successful tender offer".
"...(We) look forward to closing the overall investment in January. We have tremendous confidence in Uber's leadership and employees..." SoftBank Investment Advisers CEO and Director at SoftBank Group Corp Rajeev Misra said in an emailed statement.
An Uber spokesperson said the transaction is expected to support the company's technology investments, fuel growth, and strengthen corporate governance.
Uber said the tender offer period has officially ended and the consortium has reached their target shareholding. The companies are now proceeding to close the overall transaction, including the USD 1.25 billion primary investment, in early 2018.
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 "To stay ahead in business from Ola, Uber will now offer auto rides too")
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