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Business News/ Companies / News/  Tata Group in talks with Uber for strategic partnership for app, says report

Tata Group in talks with Uber for strategic partnership for app, says report

Tata Group is reportedly in talks with Uber for a strategic partnership to increase traffic volumes and engagement on Tata's digital platform, Tata Neu.

A screengrab of the Tata Neu app.Premium
A screengrab of the Tata Neu app.

The Tata Group is in discussions with Uber Technologies to establish a strategic partnership aimed at increasing traffic volumes and engagement on Tata's digital platform, The Economic Times reported citing sources.

The collaboration may involve integrating Uber's services as an 'anchor app' within Tata Neu, positioned as a 'super app.' However, Tata Digital denies any ongoing talks, and Uber has not responded to queries.

Tata Neu, part of Tata Digital, aspires to cater to 50% of an average customer's daily, monthly, and annual needs. However, it faces challenges such as stagnation in user growth and low customer engagement. The partnership with Uber could address these issues by attracting daily users to Tata Neu and broadening its product portfolio.

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CEO Meetings and Potential Alliance

Uber Technologies CEO Dara Khosrowshahi and Tata Sons Chairman N Chandrasekaran met earlier this year in Davos, with expectations of further discussions during Khosrowshahi's upcoming India trip. The exact terms of engagement are still being worked out, and there's no guarantee of concrete results.

Khosrowshahi has diversified Uber's services into areas such as grocery delivery and high-margin advertising. With user numbers growing to 150 million from 45 million seven years ago, Uber announced a $7 billion share buyback program after reporting its first full year of operating profit.

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Financial Commitments and User Base

Addressing previous complaints about glitches and poor user experience, Tata Digital has revised its strategy to enhance app performance and user satisfaction. A new CEO has been appointed to drive business expansion and overcome challenges.

Tata Sons has allocated over $2 billion to Tata Neu, with reported installs at 60 million and NeuPass members at 75 million. The strategic partnership may also involve equity participation, although this remains unverified.

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Tata Motors and Uber's Electric Vehicle Commitment

In February, Tata Motors committed to supplying Uber with 25,000 electric vehicles, marking the largest EV commitment between an automaker and a ridesharing platform in India. The partnership aims to electrify Uber services in major cities and may include a longer-term supply commitment.

Tata Motors, with a 70 percent share in the passenger EV market, aligns with Uber's zero-emission goals.

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Published: 15 Feb 2024, 02:09 PM IST
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