Uber Technologies Inc has announced its first-ever operating profit of USD 326 million for the quarter ended June 2023, but the ride-hailing company is grappling with a unique problem in its path to profitability in India—trip cancellation and offline driving. Offline trips happen when a driver finds a rider through the app, cancels the trip but transports the passenger offline to avoid paying commission to the platform. Uber executives concede that it is a serious problem in India.
After driver cancellations shot up to unprecedented levels last year, the company engaged with drivers and tried to address some of their complaints. In a bid to overcome the huge revenue loss, Uber is now reaching out to riders advising them not to take off-the-app trips. Highlighting its technological innovation and safety features, it has launched a campaign called ‘If you’re off the app then you’re off the map’.
“When we saw instances of offline trips bubbling up, we took on this as an Indian initiative and we have created an easy way to report offline trips. We have shared this experience with the global team,” says Manasi Chadha, director of customer experience at Uber India and South Asia.
However, the company has refused to reveal the economic impact of that. Chadha adds that Uber is using technology to improve safety, which includes the deployment of machine learning tools to triage safety issues and prioritise support. It is mulling artificial intelligence-based support automation for smaller disputes and cancellation refunds.
Uber, in collaboration with law enforcement agencies, is also planning to launch an SOS feature where the drivers or riders can share a live trip and other essential details instantly.
“There is a product we’re working on that allows live feed sharing of audio recording within the app in safety situations we feel is a deterrent to bad actors,” says Sooraj Nair, head of safety operations, India & South Asia. Uber’s share of revenue from Asia Pacific region is USD 1,062 million in 2023. This is relatively smaller compared to its home market but it is one of the fastest-growing geographies with 31% growth. Uber to trip drivers t