Tata Eyes Tie Up With Uber For Digital Business Push Say Reports

The Tata Group is reportedly in discussions with Uber Technologies for a strategic partnership aimed at boosting traffic volumes and engagement on Tata’s digital platform, Tata Neu. 

The collaboration may involve integrating Uber’s services as an ‘anchor app’ within Tata Neu, positioned as a ‘super app.’ However, Tata Digital denies 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. It currently faces challenges such as stagnation in user growth and low customer engagement. A potential partnership with Uber could attract daily users to Tata Neu, addressing these issues and broadening its product portfolio.

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.

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.

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.