Ride-hailing Uber, which is facing heat from Rapido with its driver-friendly monthly platform fee model, says it’s open to any model that helps drivers who number 1.4 million now. The San Francisco-based rider app entered the country in 2012 with just one product in one city and today boasts of close to a dozen offerings across 125 cities, most of which are locally developed and unique to this market. Uber India president Prabhjeet Singh tells Benn Kochuveedan that it grew a whopping 40% in terms of driver additions from 1 million in 2023 to 1.4 million in 2024.
Your rival Rapido with its monthly platform model as against your 30% commission model from each ride is drawing a lot of attention forcing Ola to follow suit. What is your approach to this pricing model and what will be the impact on your revenue if switched to this one?
We are open to all pricing models that help our driver partners. In fact, we are testing a model that’s based on a monthly fee model in some cities. All our services are based on the feedback from customers and our driver partners. That we’ve added 0.4 million new driver partners in 2024—from 1 million in the previous year to 1.4 million—is a testimony to the success of our business model. The way we operate is not necessarily about what others do. What we care for is our partners’ profitability and choices. This is a competitive market and we are continuously innovating--whether it's our features, or the way we work with drivers. We offer different operating models to our partners. For example, our auto business runs on a subscription model, we also offer different models in some cities for cabs. There is no one uniform answer, that's the power of a very diverse business and you literally can actually customize according to market demands.
What we want to make sure is that irrespective of the way drivers engage with our platform, their earnings should be fair, stable, and transparent. Yes, multiple pricing models are in the market and we’ll continue to iterate with drivers to ensure that they have choices. That 4 lakh new drivers came onto our platform last year alone means drivers are choosing to work with us despite having the choice of working with multiple platforms.
You’ve nearly a dozen products here. How many of them are profitable?
A very large percentage of our products are profitable. We don't report product-level profitability but at the end of the day the fact that we are growing rapidly means we are running a profitable business. We make enough money to reinvest in other new products. Our disciplined operations allow us to reinvest in categories which are future markets, so it's a portfolio of products that we manage. India business is growing strong, we continue to have a very sustainable business, and we’re reinvesting profits from one part of the business to other parts. As a policy we don't publish specific revenue numbers.
How is Uber Green doing? What’s preventing its faster adoption?
As the largest ride-hailing platform we must lead the industry by being a catalyst. For more EVs to come to our platform, I think OEMs have to come together, financing has to improve, more fleet partners with EVs have to come forward, and finally consumers have to opt for a green car which is costlier than a normal ride. We launched Uber Green about two years ago and it is now live in five cities, including Mumbai and over 20,000 EVs are on our network now.
At the end of the day it comes down to an economic choice for the driver. Pricing is the biggest speed bump I would say. Ride-hailing vehicles tend to run longer, they need a certain range, price points need to be lower, there must be the right charging infrastructure. So we are trying to solve for it by working with fleet partners, recognising that they will be able to make those investments in creating captive hubs, they are able to purchase those assets but that takes time. Also the resale market for EVs is still to fully play out.
Many of your services like Ubermoto, Uber Shuttle don’t have licences in many cities?
Transport is a concurrent subject and every state has its own rules and regulations. What we’re doing is as we innovate and pilot new services we simultaneously work with respective state administrations and educate them on the need to give customers mobility choices.