Uber goes for the kill with its plans to invest $1bn in India

Uber has pledged $1 billion investment in India over nine months and will expand its operations to new cities along with announcing new products and payment solutions.

The announcement came days after its rival, Ola, is expected to raise at least $500 million in India.

Amit Jain, the India president for the San Francisco-based startup, told Economic Times Uber will establish a great support network and public-private partnerships.

"Uber is currently at a $250-million run rate in India, with close to 200,000 rides a day," an industry source told the financial daily.

Uber stated the investment will help the app-only company reach over 1 million trips per day in the next six to nine months and expected to support over 200,000 jobs in India by 2016.

Taxi-hailing app Uber was launched in India in 2013 from Bengaluru and presently is available in 18 cities.

Meanwhile, Uber's Asia head for business, Eric Alexander, told ET last year that the company was ready to invest $500 million in India over the next few years.

In China too, Uber is expected to invest $1 billion in 2015 to expand operations.

It is noteworthy Taxi apps such as Uber and Ola are rapidly changing the industry without owning a fleet of their own but using technology to provide cabs on demand.

Meanwhile, in the past three months, Uber has rapidly adapted itself to the Indian market.

It is venturing with Telangana government to identify and train more than 2,000 drivers by the end of 2016 who will then drive on the Uber platform. The company, which plans to invest up to $50 million in the southern state, has set up its customer care facility in Hyderabad.

Uber also started partnering with autos in Delhi and is rolling out cash payment options for customers in six cities.

On the other hand, Ola is focussing on increasing presence in smaller towns and cities.

(Image: Reuters)