Uber gets an edge over competitors with their new investment, Xchange
Of what can be regarded as being a step ahead than the rival, Uber India played a confident shot into its growth and sustenance, putting Ola behind. In the recent time, as believed by the news from the Registrar of Companies, Uber International Services Holding B.V and its subsidiary Mieten B.V invested a total sum of INR 43 Crores, as in $ 6.4 Mn, in a Mumbai-based car leasing firm Xchange Leasing India Pvt. Ltd within two installments (January & March).
Interestingly, both Uber and the Xchange have a common Director, Mohd Akbar Khan which would have enabled the investing to be smooth as Uber and its subsidiary collectively invested INR 10 Crore on January 20 and INR 32.99 Crore on March 29.
Uber has started the leasing business internationally in 2013 with firms such as GM & Toyota and has developed an association with the Xchange from last December. This move by Uber is believed to gain its supply and can head-on Ola confidently in these leasing programmes.
This leasing business is expected not only to increase its supply, also to help Ola and Uber retain their drivers particularly confining them to their respective platforms. Right now, most drivers are utilizing both Ola and Uber to get more clients and, hence, are not sticking to one service exclusively.
The deal for the Uber drivers is that they have to pay a prior security deposit of INR 30,000 – 35,000 to be a part of the leasing program and then pay monthly installments with an option to even own the vehicle only after three years. This would enable them to borrow at cheaper interest rates, which will obviously boost the supply of cars, thereby giving Uber some credit. Moreover, Uber has bought CNG-fuelled cars such as Maruti Suzuki India Ltd’s WagonR and Ritz in Delhi, among others, as per the news report.
As we know the announcement of Uber a year ago stating that the company would invest $1 billion in India, we can recognize how important Indian market is for Uber and we think it is heading right towards its goal.