Uber Partners with ONDC to Enhance Mobility Offerings Across India

• ByStartupStory     |    February 22, 2024

Uber, the San Francisco-based ride-hailing app, has entered into a memorandum of understanding (MoU) with the government-backed Open Network of Digital Commerce (ONDC) to enhance its range of mobility offerings on the Uber app. According to Uber Global CEO Dara Khosrowshahi, the company views open-source tech stacks with keen interest, particularly in the mobility, transport, and travel sector. T Koshy, MD and CEO of ONDC, emphasized the significance of the MoU, stating, “Today’s MoU is a major step forward and one we hope will enable a diverse range of mobility solutions.”

Over the past decade, Uber has expanded its footprint to 125 cities across India and completed over 3 billion rides to date, underscoring its extensive presence and market penetration in the country. As highlighted by the company, India remains a robust geography for Uber, with a strong competitive position vis-à-vis its major competitor.

“India for us is super strong, and we are gaining category position versus our big competitor there. And we think we’re the larger player,” noted Khosrowshahi, emphasizing Uber’s confidence in its market position and growth prospects in India.

In the fourth quarter, Uber witnessed a significant increase in net profit, nearly tripling to $1.43 billion, driven primarily by a substantial pre-tax benefit resulting from the re-evaluation of the company’s equity investments. This financial performance reflects Uber’s resilience and profitability amidst evolving market dynamics and operational challenges.

The MoU with ONDC signifies Uber’s commitment to leveraging technological advancements and strategic partnerships to enhance its mobility solutions and cater to the evolving needs of consumers in India’s dynamic transportation landscape. Through collaborative efforts with ONDC, Uber aims to diversify its offerings and provide innovative mobility solutions to its users across the country.

India’s vibrant market presents immense opportunities for Uber to innovate and expand its services, tapping into the growing demand for reliable and convenient transportation solutions. By collaborating with ONDC, Uber seeks to leverage synergies and unlock new avenues for growth and market expansion.

“We see a lot of potential in India’s mobility sector, and through strategic collaborations like the one with ONDC, we aim to further strengthen our foothold and enhance our offerings to meet the diverse needs of Indian consumers,” stated Uber’s leadership, highlighting their commitment to driving innovation and growth in India’s mobility ecosystem.

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