Uber Technologies reportedly considered countless possibilities for its Indian operations, including a sale. The negotiations, however, came to an end when the valuation of the ride-hailing firm plunged. Uber considered options and eventually reached out to many interested parties after noticing its limited capacity to improve its company successfully in the country, according to Bloomberg.
According to the report, Uber mulled a stock swap with a local company as well as a pullout. A stock deal was preferred at the exploratory level to maintain its presence in India. However, Uber has dismissed the report, labelling it "categorically false." "We have never even considered leaving India for a second. India is just as crucial to Uber today as it was nine years ago. We are serving customers and drivers in over 100 cities, aggressively employing Indian talent, and planning for the next decade and beyond," said Uber spokesperson Ruchica Tomar said in a statement. Meanwhile, Uber CEO Dara Khosrowshahi responded on Twitter to dismiss the report, stating it holds "zero truth."
Amazing that they ran this story - there is zero truth to this story - wasn't explored, wasn't considered, discussions didn't happen, at any level - and we told Bloomberg as such. Total clickbait (or sub-bait in this case). https://t.co/YrgPZpwyeu— dara khosrowshahi (@dkhos) June 23, 2022
The Covid-19 outbreak and subsequent lockdown hampered Uber India's operations in FY21. It posted a loss of Rs 334 crores for the fiscal year, compared to a profit of Rs 720.7 crores in FY20. Its operating revenue plummeted to Rs 370.5 crores in FY21 from Rs 703.1 Crore the previous year. It should be noted, however, that the sale of UberEats to Zomato added to the company's revenue and profit in FY20. The ride-hailing firm has been underperforming in India due to a variety of causes like as rising fuel prices, driver cancellations, and growing user dissatisfaction.
Cab aggregators have also come under government scrutiny as a result of increased consumer grievances. Last month, during a meeting with representatives of mobility players, the government criticized the companies for alleged unfair trade practices and warned them of strict action if they did not reform their systems. The market for online taxi services in India is estimated to increase at a compound annual growth rate (CAGR) of 16.60 percent, from Rs 29.75 billion in FY19 to Rs 61.59 billion by 2024.