Uber India bets big on two and three-wheeler markets; needs push for EV fleet: India president

Uber India, having transitioned from being primarily a four-wheeler ride-hailing platform, is seeing increasing growth in the two- and three-wheeler markets. “We were a car-based service for the longest time, but now two- and three-wheelers are our fastest-growing segments,” Uber India and South Asia President Prabhjeet Singh told ET on Wednesday, adding that this transition is attracting a new pool of drivers and consumers, significantly changing the growth dynamics for the company.

He believes that going forward, the Indian market will see a far deeper adoption of shared mobility, with Uber remaining the largest player. “If the right price point and the right service levels can be offered,” Singh noted. Sharing his insights on the market and the several products that Uber offers, the president said, “We have learned that the same consumer wants different services from Uber. So, we are building strategies around being able to find value propositions for consumers for different use cases.” The company processes over 20 million trips a week and has approximately 40 billion interactions, according to Singh, who aims to set a benchmark in the sector.

Uber anticipates growth in “premiumisation” as India’s middle class continues to earn more, while affordability remains a key focus.

Reiterating his point, Singh emphasised that the Indian market has strong consumer demand but is a “vehicle-constrained market” that requires immediate attention from all stakeholders. “A poor man has to invest in a rich man’s asset before he can earn a living from it. I hope that through different business models and policy changes, we can shift this dynamic and reduce these barriers.”

Sustainability: a team sport

Speaking about the electrification of shared mobility platforms, Singh described it as a “team sport” that requires the active participation and accountability of various players, including the government, original equipment manufacturers (OEMs), and charging infrastructure providers.

Uber has launched Uber Green in four cities, supported by significant external investments. “However, these electric vehicles are about 50% more expensive than regular CNG vehicles. To encourage fleets to invest, Uber is underwriting their investments and has seen positive traction, though still more is needed,” the India head said. Currently, only 3% of its million-plus active earners on the platform use electric vehicles.

“We want to hold the government accountable for subsidies that are going to private vehicles—which, in my view, is a dollar misspent. Rather, it should be allocated based on a dollar per kilometre of travel for shared mobility vehicles,” said Singh.

He added that even the OEM partners in the market are pricing their products at around Rs 12 lakh, but the sweet spot is between Rs 9 lakh and Rs 9.5 lakh. “They have those vehicles in their portfolio but don’t make them commercially available, and we want to continue to use our scale and influence to drive that change.”

Uber has one of its largest workforces outside the US based in Bengaluru. Singh highlighted how a lot of tech for the world is being “built in India” for the end-to-end development of its products.

“The Indian market pushes you to innovate. Our engineers in India are continuously learning, and some of the things we’ve built here have been taken global. For instance, intercity services have grown out of India. Similarly, the Uber Shuttle, which we see in Delhi and Kolkata—and hopefully in Bangalore soon—is now being used to transport people from LaGuardia Airport to New York City.”