Remember UberMoto service that was launched in Bangalore as a pilot project earlier this year? The service had to be suspended due to regulatory issues. But now, the company has launched the service in Hyderabad.
Travis Kalanick, CEO of Uber was present at THub, Hyderabad’s startup incubator to launch the UberMoto service. The company has also signed a partnership deal with Hyderabad Metro Rail to provide last-mile connectivity to commuters.
Commenting on the launch, Travis Kalanick, CEO of Uber, said:
Hyderabad has been a wonderful city to do business in and it embraces innovation as much as or more than other cities we have seen around. With all the regulatory obstacles around the world, I thank this city to help make Uber possible.
Uber will charge Rs. 20 for the first three kilometres and Rs. 5 per kilometre after that. This service could also help the company add significantly to their consumer base, by virtue of the cheaper price points, but will also add to its cash burn.
Interestingly, the pricing of the service is more than its pilot run in Bangalore. When launched in Bangalore, UberMoto’s fare started from as low as Rs. 3 per kilometer, while now, it charges Rs. 5 per kilometer.
The company had signed an agreement with the Telangana government last year to invest $50 million in the state. Following on that agreement, Uber opened a customer service and operations support centre in Hyderabad in February.
Speaking about the future of Uber, Kalanick said that it lies in helping cities reduce congestion and pollution. He added:
We have the second-largest presence in Hyderabad in terms of personnel.Our purpose is to serve this city for a future with less pollution and less congestion.
With the launch of UberMoto, the company is looking to set up an additional revenue stream by offering low-cost two wheeler rides, and further take on Ola’s just launched Micro and other similar low cost commuting services.
UberMoto was originally launched in Bangkok and Bangalore was the second city in the world to get this service. Following this, Ola also launched similar service. However, the service faced many regulatory hurdles with the Karnataka government and both the companies had to shut down their cheapest service offering.
In India, the UberMoto service will compete against a few funded startups offering similar services, which includes Rapido, Bikxie, Baxi and M-Taxi among others.
