Mint Explainer | Why Uber is making a second startup bet in India
After years of relying on Everest Fleet, Uber has invested in startup Carrum to expand fleet supply, hedge EV risks, and grow premium ride options.
Uber India is shifting its fleet strategy. Until now, the company had invested only in Everest Fleet, backing the operator with a $20 million funding round in June 2023, followed by around $30 million in 2024 and another $20 million in 2025.
That single-partner approach is changing. Uber has invested $7 million in Carrum, the CarDekho Group–backed fleet startup managing about 3,000 electric and CNG vehicles, according to two people familiar with the matter.
Mint breaks down what this means for Uber, drivers, and fleet operators.
Why is Uber diversifying its fleet partners?
Uber India relied heavily on Everest Fleet to supply professional vehicles, particularly electric vehicles (EVs). But ride demand has surged—growing roughly 25% in 2025 across large metros, according to Praxis Global Alliance estimates—while fleet supply has lagged. Shortages have emerged in Delhi NCR, Bengaluru, Hyderabad, and Mumbai.
“As Everest emerged as Uber’s dominant organised fleet partner, concentration risk increased," said Ram Soni, partner, Mobility, Energy and Transportation at Praxis Global Alliance. “Diversifying fleet partners allows Uber to scale supply faster and maintain service levels." Commuters have increasingly reported longer wait times, particularly at airports and IT hubs during peak hours.
What does Carrum bring that Everest Fleet doesn’t?
Everest Fleet focuses on mass-market EV deployment, while Carrum offers a different mix. Backed by the CarDekho Group, Carrum operates about 3,000 CNG and electric vehicles, with an emphasis on CNG-first operations and premium categories.
Carrum has also carved out a niche by deploying SUVs for Uber Black in Delhi-NCR and Mumbai, targeting higher-margin rides, notes Soni. This helps fill a void in the premium segment after the BluSmart disruption, while complementing, rather than competing with, Everest’s mass-market focus in the near term.
Is Uber hedging its EV push with CNG?
EVs remain central to Uber’s long-term decarbonization plans, but the company has softened its aggressive EV stance in the US. In India, the Carrum investment hedges against persistent EV charging gaps and policy uncertainty, helping ensure fleet uptime amid the country’s uneven green transition.
Carrum’s CNG-heavy model offers immediate operational stability, with Uber already deploying more than 250 SUVs from its fleet. CNG fleets deliver higher uptime and more predictable economics, “while reducing exposure to fluctuations in subsidies such as FAME and state-level EV incentives," notes Soni.
What does this mean for drivers and fleet operators?
Everest currently supplies roughly 25,000-30,000 vehicles to Uber India, accounting for a significant share of the platform’s organised fleet within an estimated 1.2-1.5 million active drivers, according to Praxis Global Alliance. Uber also works with other fleet operators such as Lithium Urban, Moove, and Camion Logistics.
Ride-hailing companies face pressure from high fleet costs, vehicle churn, and driver retention challenges, with weekly churn around 3%, estimates Praxis Global Alliance. “A multi-partner ecosystem subtly shifts bargaining power back to Uber on pricing, service levels, and expansion priorities while keeping fleet partners economically viable," said Soni.
For fleet operators, who typically operate on thin 8-10% Ebitda margins, small changes in utilization, uptime, or commission terms can have an outsized impact on profitability. Increased competition may pressure margins but also drive higher efficiency. For drivers, the outcome is mixed—better vehicle availability and steadier hours, but tighter performance benchmarks.
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