Uber

Tata Group and Uber join hands for a USD 160 million agreement

Uber-cab-services-banned-in-Delhi

Popular taxi aggregator Uber cabs entered into an agreement with the Tata Group for vehicle sales and finance reportedly worth USD 160 million (INR 1076 crore). The agreement involves a few companies under the Tata Group such as Tata Motors, Tata AIG, Tata Capital and Tata Motors Finance.

Under the agreement, customers planning to setup businesses on Uber’s platform will benefit from a number of services. While Tata Motors will provide vehicles such as the Indica and the Indigo at concessional rates, Tata AIG will be taking care of the insurance factor. The finance division of the Tata Group will offer loans to the customers while the business support services will handle operational support under the deal.

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The deal is currently valid only for the state of Karnataka but will be spread across the country in a staged manner. The move is likely to increase the number of owners under the cab aggregator’s banner. As many as 20,000 Uber drivers will reportedly benefit from the agreement.

Also read: Rumour mill: Uber places an order for 1 lakh units of the Mercedes-Benz S-Class

The news comes about a fortnight after the Delhi government allowed app-based premium bus service to ply in the capital. Under the scheme, companies such as Uber will determine the routes, and notify the users about the same on their apps. Users can then book their seats in advance and use the service which would be more expensive than the regular bus service, but would turn out much cheaper than hailing a cab.

Source: Economic Times

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