Uber launches On-Demand Auto Rentals to offset its financial disruption
We all know that Uber had laid off 600 members of its 2600 employees in May 2020, to compensate for its financial chaos in the midst of the outrageous pandemic. This time Uber has not followed the same strategy. Instead, it launched a new service called on-demand auto rentals in six cities across India. The services are currently available in Bengaluru , Delhi, NCR, Mumbai, Hyderabad and Pune. As per this package, customers can make use of unrestricted stoppage and personalized rental services for INR 169 / hour for 10 km. Customers have the flexibility to extend their package up to 8 hours.
According to analysts, CAGR on ride sharing business was projected at 19.87 per cent from 2018 to 2015, but the global pandemic cut the breaks for this growth. Latest layoffs of 20 per cent of its workforce and last year's loss of $8.5 billion illustrate the impact of pandemic on Uber’s operations.
Uber recently announced plans to extend its last mile logistic services related to Business to Customer ( B2C) and Customer to Customer (C2C) to mitigate the loss of revenue from its conventional ride hailing services following the Covid-19 pandemic.
The company launched its C2C delivery service "Uber Connect" in early 2020 with the goal of allowing residents to transfer goods from point A to point B within city limits. Similar to Dunzo, it also has features such as ordering grocery and other essentials from nearby retail stores, and providing these services in a versatile way by partnering with Nature's Basket, Big Basket, Spencer's, Flipkart and Medlife. It outreached 1 lakh home deliveries across 11 cities.
This clearly shows that Uber is pursuing a sustainable growth plan with available bandwidth and is doing its best to compensate for the layoff and financial loss amid Covid-19.