Discover the inside scoop on Uber CEO Dara Khosrowshahi’s eye-opening revelations about India’s market challenges and the company’s daring plan to thrive despite the odds. Get ready for insights that will change the way you see business in India!
Uber CEO Dara Khosrowshahi on Indian Market
Uber CEO Dara Khosrowshahi acknowledges the unique hurdles of the Indian market, describing it as one of the toughest for growth. He points out the paradoxical situation where customers demand more services but are hesitant to spend much.
During a casual chat with Infosys co-founder Nandan Nilekani in Bengaluru on February 22, Khosrowshahi candidly shares his observations about India’s market dynamics. He emphasizes, “India is one of the toughest markets out there; they are so demanding and do not pay for anything. If we can succeed here, we can succeed anywhere else.”
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Plans for Expansion Despite Challenges
Despite these challenges, Uber remains committed to expanding its services, especially focusing on affordable options like two-wheeler and three-wheeler rides in India. Uber CEO Dara Khosrowshahi sees this as a significant opportunity, saying, “One of the strategic single biggest opportunities is lower cost products like two-wheeler and three-wheeler… We are also getting into buses in some countries.”
Uber’s journey during the pandemic hasn’t been easy. Lockdowns severely impacted its core ride-hailing business, leading to tough decisions like layoffs. Khosrowshahi reflects, “We were much focused on consumers and we took drivers for granted but post-pandemic we had to focus on our drivers. So we changed and offered them more incentives.”
Financial Performance and Outlook
Despite the challenges, Uber’s financials show signs of resilience. The company reported its first annual net profit in 2023 since going public in 2019, with a significant increase in free cash flow. Looking ahead, Uber expects moderate to high growth in gross bookings and substantial profit growth over the next three years.
In India, Uber’s efforts are bearing fruit. The company reported impressive revenue figures for FY23, driven by a surge in both ride and support service revenue. Despite the market challenges, Uber’s presence in India continues to strengthen, promising further growth and adaptation to meet local needs. In FY23, Uber India saw a remarkable surge in its consolidated revenue, totaling Rs 2,666 crore. The revenue from rides skyrocketed by an impressive 74 percent, reaching Rs 678 crore, while support services revenue hit Rs 1,977 crore, marking a substantial 52 percent increase year-on-year.
Bhaarat Bulletin’s Shikha Rai and Bimal Dev have contributed to the above report
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