Uber Auto, relaunched in January, has now opened its doors in New Delhi

Seven months after its launch back in 2015, Uber shut down its uberAUTO service in New Delhi. “We are temporarily removing this product (uberAUTO) to solve specific problems that need to be resolved to help it scale,” a spokesperson for Uber told Quartz (https://qz.com/567184/uber-has-quietly-withdrawn-its-auto-rickshaw-hailing-service-in-india/) back then. Uber completely shut the service in India in March of 2016. uberAUTO was operating in Coimbatore, Indore and Bhubaneshwar, apart from New Delhi.

Now, over two years later, the ride-hailing company has once again given customers in New Delhi the option to book an auto, in a bid to outdo its Indian rival Ola.

uberAUTO launched in 2015 with much fanfare as it was the first option for passengers outside the taxis. Furthermore, the addition of auto rickshaws meant that passengers can avail afar cheaper ride, if they wanted and pay digitally. It seems that at the time of the launch, despite the good feedback from the passengers, and the introduction of a cash mode, uberAUTO did not expand beyond the confines of the capital city. This all came at a time when Ola was expanding its reach within the auto rickshaw segment across India.

Fast forward to 2018. Uber said that it wanted to see how the ecosystem has evolved before dipping its feet in the water again. Now, it has seen Ola fly past it in the number of auto rickshaws signed up upon the platform. That's the main reason why Uber is relaunching uberAUTO. To compete with Ola.

Ola launched its 'Auto' service in 2014 in Bengaluru and Chennai. Today, it operates in 73 cities and has 1.2 lakh autos associated. Ola Auto has empowered millions of driver partners. The company says that they have witnessed reductions in idle time (20%-30%) and fuel costs (15%-20%). These auto drivers, using the Ola platform, get nearly 90% off their daily passengers through the app and revenues have increased by more than 30%. Uber is hoping for more of the same.

The service relaunched in January - simply called Uber Auto - with Bengaluru and Pune getting it first. The price was just Rs 25 for rides up to 4kms. On Monday, 19 March, Uber announced uberAUTO's expansion into New Delhi. Uber's new CEO, Dara Khosrowshahi, has visited the country in February. Khosrowshahi reiterated the importance of Uber Auto for the company. After successfully launching in the capital city, Uber plans to take uberAUTO to India's financial capital, Mumbai.

It will be an uphill struggle for Uber to gain as many driver partners as Ola, but the relaunching of uberAUTO, at the very least, means the company is committed to going toe-to-toe with Ola.

Ola Auto & IRCTC

While Uber has relaunched uberAUTO, Ola has expanded the reach of its cab service. Ola and Indian Railway Catering and Tourism Corporation have launched a six-month pilot project. This project will allow commuters to book an Ola cab directly from the IRCTC Rail Connect mobile application and website. One can book all the services offered by Ola, including Ola Auto, at no additional cost directly on the app or the website.

This will definitely help Ola increase its share of the market.

Thanking its customers

Uber has thanked its customers in its press release announcing the expansion of uberAUTO to New Delhi. "Thank you for launching Uber Auto!" reads the headline (https://www.uber.com/en-IN/blog/new-delhi/launching-uber-auto/). For now, one can request an Uber Auto in Central and South Delhi and be dropped at a location of their choice. In 2015, uberAUTO was also available in Gurgaon and Noida through 'NCR permit holding vehicles'.

Back in 2015, Uber may have thought that Indians aren't going to fire up an app to hail a rickshaw. Looking at Ola's explosive growth in the segment has made Uber do a re-think. Just like cabs, the auto market is ever expanding, and getting in on it, will also help Uber expand its bottom line and reach in the country.