Discussions between Tata Group and Uber Technologies may herald a strategic collaboration to amplify traffic and interaction on Tata Neu
Tata Group is reportedly engaging in discussions with Uber Technologies to forge a strategic partnership aimed at enhancing traffic volumes and engagement on Tata’s digital platform, Tata Neu. According to recent reports, the Tata Group is in talks with Uber Technologies to establish a strategic partnership aimed at increasing traffic volumes and engagement on Tata’s digital platform.
While details are still being finalised, the collaboration could potentially involve integrating Uber’s services as an ‘anchor app’ within Tata Neu, positioned as a ‘super app.’ However, Tata Digital has refuted any ongoing discussions, and Uber has not yet responded to queries regarding the matter.
Tata Neu, a part of Tata Digital, aspires to cater to 50% of an average customer’s daily, monthly, and annual needs. Nevertheless, it faces challenges such as stagnation in user growth and low customer engagement. The proposed partnership with Uber could potentially address these issues by attracting daily users to Tata Neu and expanding its product portfolio.
Earlier this year, Uber Technologies CEO Dara Khosrowshahi and Tata Sons Chairman N Chandrasekaran reportedly met in Davos, with further discussions anticipated during Khosrowshahi’s forthcoming India trip. However, the exact terms of engagement are still being negotiated, and concrete outcomes are not guaranteed.
Uber Technologies has diversified its services into sectors such as grocery delivery and high-margin advertising under the leadership of Khosrowshahi, resulting in a significant increase in user numbers. Uber recently announced a $7 billion share buyback program after reporting its first full year of operating profit, with user numbers growing from 45 million to 150 million over seven years.
Acknowledging previous complaints about glitches and poor user experience, Tata Digital has revamped its strategy to improve app performance and user satisfaction. Additionally, a new CEO has been appointed to spearhead business expansion and tackle existing challenges.
Tata Sons has allocated over $2 billion to Tata Neu, with reported installs reaching 60 million and NeuPass members totalling 75 million. Although unconfirmed, the strategic partnership may also involve equity participation.
In February, Tata Motors pledged to supply Uber with 25,000 electric vehicles, marking the most extensive EV commitment between an automaker and a ridesharing platform in India. This partnership aims to electrify Uber services in major cities and may include a longer-term supply commitment, aligning with Uber’s zero-emission objectives.
