Uber dismisses claims of 'exploring options to exit India'
NEW DELHI: Ride-hailing firm Uber has denied a media report that said it had explored options to exit India by selling its local unit. Ruchica Tomar, Uber spokesperson, said Bloomberg’s reporting is categorically false and that they have never explored exiting India—not even for a minute.
“India is as important to Uber today as it was when we launched nine years ago. We are serving riders and drivers across more than 100 cities, hiring Indian talent aggressively, and planning for the next decade and beyond,” said Tomar.
A report citing sources said that Uber Technologies Inc. explored options for its Indian ride-hailing business, including a sale, but suspended discussions after tech startup valuations cratered. Dara Khosrowshahi, Uber CEO, also rejected the report in a tweet: “Amazing that they ran this story – there is zero truth to this story – wasn’t explored, wasn’t considered, discussions didn’t happen, at any level – and we told Bloomberg as such.”
In April this year, the CEO said that they continue to expand the product offerings for the Indian consumer and that they are in for a long game in India. The report said Uber initiated weighing alternatives and reached out to several interested parties after recognising it had limited potential for profitable expansion in the country.
Uber and its fierce competitor in India- Bengaluru-based Ola - have been struggling to make a profit in the highly price-sensitive market. Other than this, Ola and Uber continue to face backlash from driver-partners for exploiting them and charging a very high commissions. In recent times it has also faced criticism from consumer forums for being an unfriendly platform. Uber had already sold its food delivery business in India to Zomato in 2020 in return for a stake in the local startup.
Uber initiated weighing alternatives: Report
Bloomberg report said Uber weighed alternatives after recognising it had limited potential for profitable expansion and met investors