Uber in India has been doing some great business. India is the largest revenue maker for Uber in the global market as the condition in other markets is pretty worse as compared to the subcontinent country. India has always been a market of great experiments for companies and Uber has taken that route. It has two innovation based teams in India unlike any other country in any part of Asia. One team is based in Hyderabad while the other team is based in Bengaluru.
Shirish Andhare who happens to be the head of product and growth for Uber in India said that there is no better country than India for innovations. He believes that India can be the country where innovations can experiment and all the global transport problems can be solved by experimenting in India. That said, Uber is also going to set up innovation hubs in India which are going to work through IT hubs.
That said, Uber’s ride in Asia has not been a smooth one. It had to sell its South-East Asian operations to rivals Grab and had to get out of China over rising concerns of profitability. That said, it was rumored that Ola is going to buy Uber’s India operations as it was hitting walls in other countries. Softbank was said to be the caretaker of this deal as it has invested heavily in both aggregators. However, days later this news broke out, Uber’s CEO came out and said that they have no plans of selling their India operations and are going to invest more in India.
Uber’s patience has finally paid off as the company reported profit growth in the Financial Year 18. It has recorded huge growth in the revenue as well. The company’s India operations have always been in profit since year one but the profits in FY 18 have been on some other level. The number is brilliant for the company and its resistance to stay put in India has been paid off.
Uber India Systems, a company which provides support to Uber raked in revenue of $74.8 million which is about INR 533 crore for Financial Year 18. The same revenue was down to $57.5 million in FY17. Uber India as a whole posted a net profit which rose by 39% from the previous year. The profits were $3.6 million which is about INR 26 crore for the FY18.
This is a prime example of India’s potential of accepting any kind of technology and also a result of sheer resistance from Uber. It will be very interesting to see how the company works from here on and builds on its innovation hubs centered in the south of India.