Product details

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Published by: Amity Research Centers
Published in: 2021

Abstract

On August 26th 2020, Uber had launched an on-demand 24x7 Auto Rentals service in India. Under this new service, a rider could book an auto and its driver for several hours and could also make several stops during a journey. Also, as part of the package, riders had the option to book an auto for a minimum of one hour or 10 km. However, this newly launched service was limited to a few Indian cities like Bengaluru, Delhi-NCR, Chennai, Hyderabad, Mumbai, and Pune. Prices would start at INR149 for a 1 hour/10 km package. However, apart from the other challenges like only three passengers per ride, non-availability of this service in all Indian cities, etc, the COVID-19 pandemic had also adversely affected ride-hailing service providers like Uber, as some customers might not prefer to use shared cabs and public transport since they were concerned about hygiene issues. Industry experts were also of the belief that those who availed ride-hailing services but could afford to purchase a car would be prone to buying a car. Given this scenario, would it be possible for Uber to attract its existing as well as new customers via its newly launched auto rentals service by adopting a slew of safety measures? What could be the underlying issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Asia
Country:
India

Featured company

Uber Technologies, Inc (Uber)
Employees:
10000+
Type:
Public company
Industry:
Transportation / ride-hailing service

About

Abstract

On August 26th 2020, Uber had launched an on-demand 24x7 Auto Rentals service in India. Under this new service, a rider could book an auto and its driver for several hours and could also make several stops during a journey. Also, as part of the package, riders had the option to book an auto for a minimum of one hour or 10 km. However, this newly launched service was limited to a few Indian cities like Bengaluru, Delhi-NCR, Chennai, Hyderabad, Mumbai, and Pune. Prices would start at INR149 for a 1 hour/10 km package. However, apart from the other challenges like only three passengers per ride, non-availability of this service in all Indian cities, etc, the COVID-19 pandemic had also adversely affected ride-hailing service providers like Uber, as some customers might not prefer to use shared cabs and public transport since they were concerned about hygiene issues. Industry experts were also of the belief that those who availed ride-hailing services but could afford to purchase a car would be prone to buying a car. Given this scenario, would it be possible for Uber to attract its existing as well as new customers via its newly launched auto rentals service by adopting a slew of safety measures? What could be the underlying issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2020.

Geographical setting

Region:
Asia
Country:
India

Featured company

Uber Technologies, Inc (Uber)
Employees:
10000+
Type:
Public company
Industry:
Transportation / ride-hailing service

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