Uber is undergoing a planning mode and has decided to invest $500 million (Rs 3,300 crore) in India by June as it challenges Ola for leadership in its third-biggest market.
“We are doubling down our resources for India,” said a senior executive at Uber.
The person added that the company has not yet utilised all the cash from the first $1-billion commitment.
“The plan is to spend each dollar more efficiently than our competitors, and invest in building a team, technology solutions that are India-focussed, and quality,” the senior Uber executive said.
Uber and Ola are engaged in fierce competition, sometimes bad-tempered, to dominate in India. Uber’s business head for Asia, Eric Alexander, said some 10 days ago that his company would overtake Ola for market leadership in a month.
The Indian company, which counts Japan’s SoftBank as its biggest investor, responded by claiming that its newly launched service called ‘Micro’ alone would overtake Uber, which is estimated to be valued at $62.5 billion, within a month in India.
Both Ola and Uber get more than 70 per cent of their revenue from Bengaluru, Hyderabad, Chennai, Delhi-National Capital Region and Kolkata. Ola has raised a total of about $1.2 billion so far, including $500 million in November from investors including China’s biggest taxi aggregator Didi Kuaidi that is building a global alliance against Uber. At the time, Ola was valued at $5 billion.