Global cab aggregator Uber on Thursday signed a Memorandum of Understanding with government-backed Open Network for Digital Commerce (ONDC) with an aim to democratise digital commerce, the ride hailing services firm said on Thursday.
The MoU was signed in the presence of Uber CEO Dara Khosrowshahi at an event.
Khosrowshahi spoke with the Infosys Chairman Nandan Nilekani on the subject of ‘Building Population Scale Technology.’
“Our vision for Uber in India is to serve the mobility needs of all Indians. This is in line with ONDC’s objective of democratising digital commerce,” he said.
“India is one of the toughest markets out there; they are so demanding and do not pay for anything. If we can succeed here, we can succeed anywhere else,” he said.
Khosrowshahi said despite the challenges, the company plans to expand its low-cost service segments, particularly two-wheeler and three-wheeler services in India.
“One of the strategic single biggest opportunities is lower cost products like two-wheeler and three-wheeler… We are also getting into buses in some countries,” he added.
Speaking on the development, MD and CEO of ONDC, T Koshy said, “As the Open Network is continuously evolving, MTT (Mobility, Transport and Travel) is certainly a critical sector for us. Different players together on the network foster innovation and newer business models. Today’s MoU is a major step forward, and one we hope will enable a diverse range of mobility solutions to benefit every Indian.”
It is worth highlighting that the announcement by Uber comes after its rival, Ola, joined the government-backed initiative in September last year to provide food delivery services.
Uber posted its first annual net profit last year since the company went public in 2019, and had free cash flow of USD 3.4 billion in 2023, up from USD 390 million a year earlier.
Announcing the results, Uber said that in the next three years, it expected gross bookings growth in the mid to high teens percentage and adjusted core profit growth in the high 30 to 40 per cent.