Uber is gradually exploiting the wide transportation gaps in emerging markets. Its latest disruption is coming to India. Uber’s CEO Dara Khosrowshahi has just announced the launch of Uber for Public Transport for the Indian market, starting with Delhi. The company has partnered with Delhi Metro Rail Corporation (DMRC) to enable the service across its 200 Delhi Metro stations.
“The results show that we are bringing new users to transit,’’ Khosrowshahi said, ‘‘and ultimately the growth of Uber and we can help all the time to really set the path for the future, and they can be part of the growth for public transit going together and we’re thrilled to be here. First in Asia, in Delhi, we know that we can bring this vision of being this operating system to your daily life together.”
Here Is All You Need To Know
- In this latest move, the company also laid out its vision of how a user can plan their journey and commute with Uber to reach their destination from doorstep to doorstep.
- Under Uber’s public transport system, users will be able to book carpool or solo rides as well as public transport through the app and Uber kiosks at Delhi metro stations.
- Passengers can also use Uber to enter and exit metro stations, through an in-app travel card.
Product chief Manik Gupta said Uber for Public Transport has been integrated with the app like its other services such as UberEats.
“It is good for the user as it gives choice, good for city and good for public transport,” – Manik Gupta
DMRC MD Dr. Mangu Singh said that partnering with companies will enable first and last-mile connectivity. He said that DMRC enables 25 Mn trips daily, and users would need a similarly smooth experience outside of the metro.
“It has been agreed that Uber will have pick up points at Delhi Metro. Space will be provided for kiosks across 210 metro stations,” he added
Earlier Delhi Metro had partnered with electric two-wheeler startups Yulu and qQuick for sustainable last-mile connectivity for passengers. Interestingly, Uber had partnered with Yulu for a half-way integration, wherein Uber users would get a button to open the Yulu app quickly to book connecting bike rides.
The seamless nature of the Uber ride-hailing and metro ticketing for passengers is sure to be a competitive advantage for the company in Delhi to start with. For Uber, India is a major market and Khosrowshahi stressed that there’s no question of halting investment in the market, even in the face of stiff competition and tons of controversy.
“We see India as the ground for innovation, we want to build in India and export globally” – Uber CEO Dara Khosrowshahi
Pradeep Parameswaran, president of Uber India and South Asia, added that UberMoto and Uber Auto are some of the biggest innovations in terms of products being built with India at the core.
What This Means For African Transport Startups
With this launch of Uber Public Transport in India, Uber is sending a strong message to startups in emerging markets, especially startups in the nascent transport sector in Africa, who are still struggling to reach milestones with limited resources. With strong global brand, good capital and enough human resources, this would be a big deal for startups like Egypt’s SWVL, which is currently trying out a similar public transport service in Egypt. Worthy of note is that Uber recently acquired Careem, SWVL’s major competitor in Egypt in a record $3.1 billion deal, a move described as a strategy for dominating ride-hailing in the Middle East. The company also recently launched a boat service in Nigeria. Perhaps before Uber’s new Public Transport Service reaches Africa, the most strategic thing African transport startups could do would be to position themselves well in time in the public transport sector.
In the coming years, Africa’s transport sector would be a hot cake for investors.
Read also: Egyptian Transport Startup Swvl targets Nigeria, Africa And Asia before the end of 2019
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world