Uber’s India operations received a boost through additional funds being infused in the company internally by two entities registered in Netherlands: Uber International Holding and Uber International. The amount received by Uber India is Rs 1,767 crore.
This information has been gleaned from the filings made by the company with the authorities by paper.vc. The company had received a much lower amount of funding the last time round, just Rs 40 crore. Although the company claims it is making profits from the ride-share cab operations, the carry-over losses and the drain through the food delivery business Uber Eats is pulling it back heavily.
The Uber management at the top, particularly the CEO, Dara Khosrowshahi, has gone on record to say that the company has high hopes for its future in markets like India. He included Africa and the Middle East as well in his statement as future bets for Uber.
At the international level too, the company has reported losses for the second quarter of the year at $5.24 billion though it has been scaled down considerably to $1.24 in the next quarter that ended in September.
The other difficulty the company faced was with its underwhelming initial public offer in the US and the company’s valuation took a hit. The management is putting up a brave face and says it is hopeful of turning it around. There may be some hope as a Morgan Stanley report puts the contribution of shared mobility, meaning the ride share companies, at 35% of all miles covered in India. This figure is likely to be reached by the year 2030 and it will further go up to 50% by 2040. Uber and Ola are the dominating players in this space in India and should benefit from this trend if it happens as predicted.
It is Uber Eats that Uber has to be worried about. The food delivery business could never come close to competing with the two leaders Swiggy and Zomato. Both the giants are well-funded and are ready for heavy burns month on month to protect their territories, yielding very little to the likes of Uber Eats or Foodpanda.