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Uber’s Investment into Hyderabad

Uber’s Investment into Hyderabad


Despite the recent controversies surrounding Uber and its planned expansion to push into Asian countries, the ride sharing giant shared plans that it would invest $50 million over the next five years to Indian city, Hyderabad.  The investment will be used to build a new office, the largest outside of Uber locations in the United States.


Solidifying its intentions, Uber and the government of the state of Telangana, where Hyderabad is located, signed a letter of intent.  The goal of the investment will be to promote Uber in India but also to provide the cities resident with jobs and opportunities for entrepreneurship.  Additionally, Uber will be partnering with local technical college, Telangana Academy for Skills and Knowledge, to hold classes to train more than 2,000 Uber drivers by 2016.


The expansion of Uber into India has been rife with controversy since a former Uber driver in New Delhi, India’s capital, was accused of sexual assaulting a passenger late last year.  This alleged assault prompted the India government to issue an official, but temporary, ban of Uber and other ride-sharing businesses in New Delhi.  Uber also faced accusations by New Delhi officials of skirting rules regarding the operation of taxis.  A judge ruled in early July that Uber should be permitted to continue operations in New Delhi, while it seeks a license from the New Delhi Department of Transportation.  Uber’s operation has caused tensions with other taxi companies, who rely on mobile technology to connect drivers and passengers, and who suffered from the New Delhi ban and strict new conditions resulting from it, including applying for radio taxi licenses to operate.


Currently, Uber is not licensed to operate in Hyderabad.  Uber and city officials met recently to discuss implementing proposed regulations to allow the ride-sharing program to begin operating in Hyderabad.  Uber hopes that within the next four weeks, “new regulatory framework” will be agreed to between Uber and the government.


India continues to be Uber’s second largest market outside of the United States.  Despite the many issues Uber has faced, the business continues to made plans to expand into South Asia and currently operates in 18 different cities.