Uber, which competes with Ola Cabs and Rapido among others, currently offers ride-hailing services on four-wheelers, auto rickshaws, two-wheeler-taxis besides hyperlocal deliveries.
The licence granted to Uber is under the Delhi government’s app-based premium bus aggregator scheme notified last November which aims to encourage the upper middle class to switch to public transport. The scheme allows aggregators to set dynamic pricing, which must not be less than the peak fare of DTC air-conditioned buses.
Uber said currently users will be able to book bus rides along with other mobility options on its app. India is the second country after Egypt where the US company operates buses under the Uber Shuttle service.
Currently, Uber Shuttle is operating in Kolkata under an MoU with the West Bengal government. The company had been running a pilot programme for Uber Shuttle in Delhi since last year.
The routes that Uber plans to run buses on will connect business districts with residential areas, covering all parts of Delhi. Each bus will have a seating capacity of 19 to 50 people and they will be operated by local fleet partners.
“We are committed to building a business which serves the mobility needs of every Indian - buses are an important addition to our available products. After a successful pilot where we’ve seen a strong demand for buses, we are excited to formally bring the magic of Uber rides to buses in Delhi,” said Amit Deshpande, head-Uber Shuttle, India.
In a statement, the Delhi transport department said, "We are pleased to extend an opportunity to Uber to utilise its global experience and technological prowess to contribute to an elevated commuting experience for the people of Delhi.”
Uber has more than 1 million drivers in India, chief executive Dara Khosrowshahi said during the platform’s March quarter earnings call. India is the third country after the US and Brazil to reach the 1-million-driver mark.
In an interview with ET in February, Khosrowshahi had said India ranks among the top 10 markets for Uber in terms of bookings.
The San Francisco-based company has added several new products and features to its offerings in India over the past year with the aim to grow revenues.
ET had reported in December that as a part of its push towards boosting average transaction size on its platform, Uber was intensifying efforts in India on mobility verticals such as intercity rides, hourly rentals and reserved bookings, some of which recorded more than 40% year-on-year growth over the preceding 12 months.
In FY23, Uber India’s mobility vertical clocked revenue of INR 678 crore.
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