Uber has announced today that they will start operating in 7 new cities in India that include Bhubaneswar, Coimbatore, Indore, Mysore, Nagpur, Surat and Visakhapatnam. India is a very important growth country for Uber.
This is for the first time that Uber has expanded in so many international cities simultaneously. With launch of these new 7 cities, Uber cabs will be available in 18 cities across India and has now become the largest geographical market after US for Uber.
Neeraj Singhal, Head of Expansion for India & the Subcontinent, Uber said in regards to the launch, “We’re thrilled to launch Uber in these 7 new cities (Bhubaneswar, Coimbatore, Indore, Mysore, Nagpur, Surat and Visakhapatnam); marking the start of the next chapter in our journey in India. The rapid 40% MoM growth we continue to see in India is unprecedented and it is not surprising that some of the fastest growing cities in the world are also here. Our data already shows that residents and visitors in each of these new cities have been eagerly waiting for Uber for sometime now and we expect to see a similar response here. Our focus on continuously leading the way on safety and creating thousands of new entrepreneurs will drive our growth ahead!”
While Uber is still struggling with license in capital city of Delhi, their growth across India has been quite rapid at nearly 40 percent month on month.
Even though Uber is growing aggressively in India, Ola Cabs is by far the biggest player in this space. They currently operate in 88 cities in India, and plan to grow to 200 cities in the next year or so. By some estimates, even Ola is growing at around 40 percent month on month.
In most of the cities worldwide, where Uber operates, they are are the top position, however, here in India they are facing stiff competition from market leader Ola, who had the first mover advantage in India and are now already available in most of the Tier 1 and Tier 2 cities in India.
In a recent interview with VC Circle, Uber’s head of Asia Eric Alexander sounded played down Ola threat and said, “We have been very focused on building our India business and are very close to Ola in terms of overall market share. Over the next six months, we will be expanding to a number of tier two and tier three cities, and strengthening our growing footprint across India.”