Executives familiar with the situation claimed that Uber Technologies CEO Dara Khosrowshahi met Tata Sons chairman N Chandrasekaran in Davos earlier this year, and the two are set to speak again in Mumbai on the former’s forthcoming trip to India to discuss the general terms of a possible merger. There is no certainty that the precise terms of involvement will result in anything tangible as they are still being worked out.
According to persons with knowledge of the situation, the Tata Group has started talking with Uber Technologies about forming a strategic Uber and Tata collaboration to increase traffic and engagement on Tata’s digital platform. Uber’s services might be included as an “anchor app” within that ecosystem as part of the partnership. According to people with knowledge of the situation, Tata Neu, which bills itself as a “super app,” has had difficulties such as low customer engagement and stagnant user growth.
Executives with knowledge of the situation claimed that Uber Technologies CEO Dara Khosrowshahi met Tata Sons chairman N Chandrashekaran in Davos earlier this year, and they are due to speak again in Mumbai during the former’s forthcoming India travel to explore the broad parameters of a possible Uber and Tata collaboration. There is no certainty that this will result in anything tangible, and the specifics of the engagement are still being worked out.
Tata Digital, the company behind Tata Neu, refuted reports of continuing negotiations. Uber did not reply to questions from ET.
Since taking over seven years ago, Khosrowshahi has led the cab aggregator into new markets including high-margin advertising and food delivery, as user numbers have skyrocketed to 150 million from 45 million. Uber is the latest Silicon Valley Corporation to increase payouts to shareholders. On Wednesday, the company announced the launch of its first-ever USD 7 billion share repurchase program, just days after revealing its first full year of operating profit.
In February, Tata Motors and Uber inked a deal for the supply of 25,000 electric cars. This is the biggest EV pledge made in India yet by a carmaker and a ride-sharing service. The XPRES-T EVs will be gradually delivered by Tata Motors to Uber fleet partners. Uber’s services in Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad will become more electrified thanks to the cooperation.
A longer-term supply promise can also be part of the strategic relationship. With a 70% market dominance in the passenger EV segment, Tata Motors plans to have a primarily electric fleet by 2030. The Uber and Tata collaboration fits both Tata Motors’ and Uber’s goals for zero-emission EV transportation in India.
“Uber is one of our key customers for our EV fleet offering,” a Tata Motors spokeswoman stated. We constantly discuss how to accelerate the adoption of green, emission-free, and noise-free mobility with our fleet customers.
Since its release in 2013, the Uber app has been downloaded by over 200 million users in India (yes), according to data and analytics company App Annie. Based on demand projections, the aggregator has stated that it will require 150,000 to 200,000 additional cars in the nation in the next three years for expansion and the replacement of existing vehicles.
Although this could not be independently confirmed, equity participation in the strategic alliance may also occur.
50% of an average customer’s daily, monthly, and yearly needs—including those for groceries, medications, clothing, food, travel, and utility payments—are targeted by Tata Neu.
However, to meet its super-app objectives, it needs higher client interaction.
“Tata Digital needs significant support and growth in terms of customer installs and membership. According to a development-related official, “the other brands really can’t get in those kinds of numbers at the moment.” “The mutual benefits of the discussion will determine how it proceeds.”
In response to prior customer concerns regarding bugs, a bad user experience, and payment problems, Tata Digital has updated its approach to improve app functionality and user happiness. Concerns among the leadership and slower-than-expected user growth had led to the hiring of a new CEO who would spearhead corporate expansion and overcome obstacles.
By drawing regular users to Tata Neu, the potential Uber and Tata collaboration, a company well-known for its mobility solutions, may contribute to the achievement of this goal. To satisfy a wide range of customer needs, Tata Digital plans to expand the range of products it offers, including options outside the customary purview of the Tata Group.
Tata Sons has given Tata Neu more than USD 2 billion. NeuPass members number 75 million, while Tata Digital pegs installs at 60 million.