Uber in talks with state govts, plans to expand UberMOTO service

Uber seems to be on expansion spree in India, the company is in talks with various state governments to get license for its service UberMOTO and introduce the bike-taxis service in other states.

The firm has got a nod from the Punjab government and will roll out the service in some cities in Punjab this week. It is already running pilot programmes in Chandigarh and Mohali.

"We are in talks with multiple states that are evaluating bike-sharing. There will be a bunch of more cities (where the bike-taxi service) will go live by the end of this year," said Prabhjeet Singh, general manager, North India, Uber.

UberMOTO is currently available in seven cities, including Faridabad, Gurgaon, Noida, Ghaziabad, Hyderabad, Jaipur and Ahmedabad; has completed two million trips within a year of its launch.

He added that after expanding UberMOTO’s presence to the entire National Capital Region, Uber plans to initiate talks with the Delhi government.

The app-based taxi-hailing company is pushing for India-wide expansion, but the ride is not as smooth. The expansion drive of UberMOTO has faced resistance from authorities in some cities.

In March last year, within a few days of launching the service in Bengaluru, both Uber and Ola had to stop the service as traffic officials alleged the companies hadn't obtained permits.

However, in December last year, Union government issued new guidelines for transport, which gave a support to bike-taxis. The guidelines, though, allow states to come up with their own transport regulations.

Uber has been pumping in huge amount to push the service in the Indian market. Recently, it infused about Rs 52 crore into its India business.

Ola, Uber’s larger rival in India, has also launched its bike-taxi service and is present in 11 cities, including Mohali, Ludhiana, Amritsar and Hyderabad. Last month, it raised $50 million from a private equity firm Tekne Capital.