|Uber is on growth fast track, India is second biggest market|
Uber started its India operation in 2013 where its rival OLA started operation in 2011. Today OLA has bigger presence and doing more number of trips per day then Uber. Uber expading its business and user base very fast. Currently it operates in 20 Indian cities where guwahati (first north east city indian for Uber ) and vadodara (a gujrati city between ahmedabad and Surat uber is present in both cities.)is new addition. Uber will expand upto 50 cities by year end.
Uber its city presence Uber is expanding its payment options as well. Yesterday they have announced to tie up with Airtel Money as alternative payment to Paytm Wallet. Uber's other payment options are cash, credit card, debit card available for all indian city. Uber is testing Cash payment system totally new to the Uber system, Uber changed its philosophy of cashless travel in India.
Indian passengers are not comfortable with credit card / debit card payment, so Uber introduced Cash payment system like OLA already has but some of the drivers complain about his feature as some of the customers are rigid in paying the fare if surge is applied or they had first free ride but not applied correctly due to some reason .(How to Set location properly to apply first free ride).
Uber is more aggressive than most. The ride-hailing service currently operates in more than 60 countries. In the U.S., you can hail an Uber in more than 150 cities. The company recently said it plans to spend $1 billion in China and another $1 billion in India to grow its business. Chief Executive Travis Kalanack said he expects the China market to exceed the market in the United States.
That's got some observers worried.
"When everyone has the Uber app, every driver is using Uber, and everyone is connected through Uber, there's going to be no room for anyone else to start a dispatching service," said Evan Rawley, associate professor at Columbia Business School.At that point, the company can increase its rates and reduce its spending on subsidies.
"It's bargain-then-rip-off pricing," Rawley said. "Classic network effect."Still, Uber faces stiff competition in India and China, where one ride-hailing company, Didi Kuaidi, is partly financed by China's sovereign wealth fund.
Uber is on pace to collect $2 billion from riders this yearUber's 20 percent cut from the cost of rides it provides should add up to $2 billion in revenue this year, a nearly tenfold increase over 2013, the latest in a series of leaked financial documents suggest.
Revenue could top $5 billion in 2016, also according to an investor presentation obtained by Reuters.
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