Uber’s IPO filing in the US cites Ola, Zomato, and Swiggy as threats to its India business
- Uber is expected to launch one of the biggest IPOs in years.
- The San Francisco-based company is expected to be valued at $100 billion.
- India, which is one of Uber’s biggest markets, found several mentions in the filing document.
For its India business, competition takes centrestage and Uber has not missed out on talking about it. In the filing, mentioning its offering Uber Eats, the company said that it competes with Swiggy and Zomato, who have a “substantial market-specific knowledge and established relationships with local restaurants, affording them significant product advantages.”
Interestingly, it was reported that Swiggy was in talks with Uber Eats to acquire their India business. However, the deal came to a hold as both companies didn’t agree on financial terms.
Uber, which has been subject to many protests and dissatisfaction from its Indian drivers, also mentioned the same in the filing. A lot of the protests have been about Uber’s cancellation of initiatives that it had earlier offered drivers to bring them on board.
However, the company also stated that its business depends substantially on operations outside of the US, India being one of them. India was also the first country where Uber allowed consumers to pay in cash, and then followed it up with other countries. “In 2018, cash-paid trips accounted for nearly 13% of our global Gross Bookings,” the company said.
And of course, the document also mentioned surge-pricing, one of the reasons why the company has often faced the wrath of its consumers. In India, after a petition was filed in the Delhi High Court in 2016, the company agreed to “not calculate consumer fares in excess of the maximum government-mandated fares in New Delhi, India”.
While it clarified that the company does carry out necessary background checks for drivers, it informed that such incidents “could have an adverse impact on our reputation, business, financial condition, and operating results.''
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