Ride-hailing company Uber is expanding its services in Delhi by introducing buses, following the acquisition of a licence from the transport department to operate bus services in the national capital.
A competitor of Ola Cabs and Rapido, Uber currently offers ride-hailing services for four-wheelers, auto rickshaws, two-wheeler taxis, and hyperlocal deliveries.
The licence granted to Uber falls under the Delhi government's app-based premium bus aggregator scheme, introduced last November. This initiative aims to encourage the upper middle class to use public transportation.
Under the scheme, aggregators like Uber can implement dynamic pricing,
which must not fall below the peak fare of DTC air-conditioned buses. Uber announced that users can now book bus rides along with other transportation options through its app.
With the approval, India has become the second country, after Egypt, where Uber operates buses under its Uber Shuttle service. Currently, Uber Shuttle operates in Kolkata under an agreement with the West Bengal government.
The company has been conducting a pilot programme for Uber Shuttle in Delhi since last year.
The planned bus routes in Delhi will connect business districts with residential areas, spanning across the city. Each bus will accommodate from 19 to 50 passengers and 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 of Uber Shuttle (India), according to Economic Times.
The Delhi transport department said in a statement, "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's CEO, Dara Khosrowshahi, stated in an interview back in February that India is one of Uber's top 10 markets in terms of bookings. The company has introduced numerous new products and features in India over the past year, aiming to increase revenues such as intercity rides, hourly rentals etc.
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