Uber Gears Up To Accelerate Indian Market
Mobile App based cab service giant Uber is keeping its options open to have its own payment wallet in India despite its current collaboration with Paytm that allows riders to pay digitally. As Eric Alexander, Head of Business, Uber Asia said that Uber partnered with payment wallet Paytm which is a part of Uber’s success and strategy to work with local companies. Eric believes that the local partnerships will make the service available to customers which will accelerate their India growth story.
According to a recent Allied market research report, “The global mobile wallet market is expected to grow at a CAGR of 127.5 per cent from 2012 to 2020. The key driver for the growth of the market is it to provide consumers with greater convenience for payment. It is estimated that more than 70 per cent smartphone users are willing to adopt mobile payment modes and 15 per cent have already completed the adoption.”
Since the growth statistics of mobile wallet adoption is growing high, Uber is happy continuing with their mobile wallet payment strategy. For the time being, Uber India will continue the partnership with Paytm, but they are not going to drop their idea to have their own wallet as it will help them to open up more options.
Recently Uber partnered with Capital One to bring a new, rewarding experience to riders. Now, every 10th ride is free (up to $15) when a rider pays with a Capital One Quicksilver or QuicksilverOne card through March 2017. To give more visibility and control over these benefits, Uber is introducing Payment Rewards — a way to discover, track, and redeem rewards right in the Uber app.
Likewise, Uber has geared up its wheel to improvise the transport facility in India with the launch of UberPOOL, where people going the same way at the same time can share their journey–bringing carpooling at the tap of a button. Close on the heels of a $3.5 billion fund raise, Uber said it is on an “investment mode” in the country and will continue to spend on bringing in more customized offerings.
“We are on an investment mode in India. Every country is different and you have to customize in every market, even as the technology back bone remains the same. We have customized the app to work on low network conditions, we introduced cash payment here, which was a global first,” Uber India president Amit Jain told.
Last year, Uber had announced an investment of $1 billion (nearly INR 6,652 crore) in India to expand its services here. It has also set up a response and support centre in Hyderabad with an investment of $50 million.
Uber is evaluating options to have its own payment wallet as it finds that the two-factor authentication (2FA) imposed by the Reserve Bank of India becomes cumbersome for its riders while making payments through credit or debit cards.
On the procedural part, he said the pricing is done automatically by the system depending on supply and demand at one point and the company does not have any “ill intentions to make extra money by using surge pricing”.
“It is not something that we at Uber control. It is not someone sitting at a computer that they decide to turn on the surge. It is purely a market-based algorithm. Surge is not something that we want use to make extra money,” Eric said. “It is a technology solution to allow riders that they are willing to pay the price at that point of time to get a car,” he further added.
On the company’s expansion plans, he said right now Uber services are available in 27 cities and the figure may go up to 50 in the current year. On the issue of compliance of local or various state laws, he said the taxi aggregator is working with various state governments.
The Tata Group announced a tie-up with Uber Technologies to offer drivers and owners on Uber platform comprehensive vehicle purchase and financing solutions, among other benefits.
Jain said a “substantial portion” of the fresh funding would come to India. “With this investment, we have more than $11 billion in our global war chest to invest in our product and markets to grow and compete,” Jain said.
The funds will help the US-based firm compete head-on with local rival, Ola, which is backed by investors like Japanese firm SoftBank and China’s Didi Kuaidi.
We are engaged with government across levels to ensure compliance and are committed to ensuring growth for driver partners and smooth experience for customers,” he said.
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