Uber has had one hell of a ride in the US. Most of which has been the highs and recent lows. The cab service provider platform has aggressively turned its eyes on India, a growing market for almost everything, including Uber.
Since its launch in India, Uber has found the major competition in Meru and Ola Cabs, who are again, cab providing platforms. The real competition that all these players face is not from on another but from the ubiquitous Indian auto rickshaw.
With over 5 million auto rickshaws covering almost every nook and corner of the country and on considerably low prices than cabs, they end up being the default choice of daily public commute.
Uber plans to deploy the low cost hatch backs like Tata Indica and Maruti Swift at a slashed down minimum fare of around Rs 75 (approx $1.20) and Rs 11 (approx $0.17) per kilometre.
While this may feel dirt cheap as cab fares but it must be keep the competition in mind. The average fare of auto rickshaws in India range from Rs 11 to 15 (approx $0.21) per km. With no minimum fare tab, in a short commute, the auto rickshaw beats the Uber cab by a huge margin.
Uber may have had the competitive advantage of being an online portal, making the bookings easy and cashing on the trust factor but being the first mover opportunity is not present anymore. With online portals and apps like G-Auto and M-Gaadi, focusing only on auto rickshaw bookings, Uber has more challenges in the list than just the sheer number of auto rickshaws.
India is a market unlike any other. It is a growing economy for sure but the citizens seek value in every penny or as in India, every ‘paisa’ they spend. In my opinion and my knowledge of the Indian consumer, Uber has a task cut out for itself.
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