App-based taxi services have changed the transportation scenario in India. The local yellow taxis in Mumbai and Kolkata are yielding fast to the rapidly expanding Olas and Ubers, and while they have responded, albeit too late, with their own app called "9211" (which was shut down owing to low response from drivers as well as passengers) the new-age taxi-services are pushing it even further.
In an attempt to woo customers across all walks of life, app-based taxi services are expanding into all kinds of vehicles in India. After Ola successfully began it Ola Auto with over 10,000 auto-rickshaws in 24 cities, Uber is now launching the Uber MOTO bike services in Hyderabad. The launch was announced recently in an event attended by the Uber founder and CEO Travis Kalanick. and K T Rama Rao, Telangana Cabinet Minister for IT, Industries and Commerce.
While speaking about the Service, Kalanick said "It's (uberMOTO) a quick, easy and affordable way to get around the city. And it's great to be working with a progressive, forward thinking government like Telangana on smart mobility solutions that can help reduce congestion in urban areas."
Rama Rao said that Uber has added another feather in our partnership today by launching uberMOTO to help solve the transportation and congestion problems for people in Hyderabad and expressed that this service will help people in reaching their destination quickly and conveniently.
Driver partners of uberMOTO were taken through a training session on various road safety related topics by representatives from the RTO before the starting their first trip.Uber and Hyderabad Metro Rail Ltd have signed a memorandum of understanding (MOU) to help extend the reach of the metro using uberMOTO, the statement said. Hyderabad will be the third city in India, after Bengaluru and Gurgaon to get the two-wheeler taxi service.The fares for the bike-taxi will be Rs 20 for the first 3 kms and Rs 5 per km thereafter.
Notably, while the company's business has expanded, and its net revenue is set to touch $ 5 billion in fiscal 2016, the privately held company has lost more than $ 800 billion in the third quarter. In Augut 2016, the company had stated that it has committed to invest $ 1 billion in India.
Organised taxi sector still has a long way to go in India. It accounts for just four to five per cent of the industry and totals $800 million, and is expected to grow to $7 billion by 2020.
