Ride-hailing giant Uber has expanded its operations in India by introducing its services in Jammu and Kashmir. The company launched its affordable cab booking service, Uber Go, and the outstation cab service, Uber Intercity, in Srinagar on January 30.
Users can now book intercity rides to popular destinations like Gulmarg, Sonmarg, and Pahalgam through Uber, according to a company statement. This expansion aligns with Uber’s broader India growth strategy, and the company is excited to serve riders in one of India’s well-loved travel destinations, said Shiva Shailendran Sekar, Uber’s Head of Supply and Regional Operation.
It’s worth noting that the government of Jammu and Kashmir issued the Motor Vehicle Aggregator Rules, 2023 last year, allowing cab aggregators like Uber and its primary competitor, Ola Cabs, to operate after obtaining valid licenses.
Vinay Samotra, the Joint Transport Commissioner of Jammu and Kashmir, confirmed in December that licenses had been issued to Uber and Ola to commence operations in the region.
Uber’s entry into Srinagar is part of its ongoing expansion plans in India. The company recently collaborated with the Airports Authority of India (AAI) to launch its app-based car aggregator service at airports in Surat, Indore, Bhubaneswar, and Varanasi.
Uber’s global vice president for public policy, Andrew Byrne, announced last year that the company was aiming to double its presence in India by expanding into more geographical locations. He emphasized that this expansion would lead to increased hiring in the country.
However, despite its expansion efforts, Uber India reported a widened net loss of over 58%, amounting to INR 311.3 Crores in the financial year 2022-23, compared to INR 196.7 Crores in the previous fiscal year. Operating revenue did rise nearly 55% to INR 2,666.1 Crores during the same period.
As of now, Uber operates in 125 cities in India and offers services for booking auto-rickshaws and bike taxis. The company faces competition from rivals such as Ola Cabs, Rapido, and BluSmart. Ola Cabs, Uber’s main competitor, recently claimed that its India mobility business achieved breakeven with a ‘segment-adjusted’ EBITDA of approximately INR 250 Crores in FY23, compared to an EBITDA loss of INR 66 Crores in the previous fiscal year.
