Uber launches bike-sharing service-UberMoto in Hyderabad

NEW DELHI: Uber’s bike sharing service, UberMoto may have failed to take-off in Bangalore but that didn’t dampen Travis Kalanick’s spirits and the CEO of the world’s most valued startup chose to fly down himself to India to launch the service in Hyderabad.

The company also signed a partnership with Hyderabad Metro Rail to provide last-mile connectivity to commuters.

“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,” said Kalanick, addressing a group of startup entrepreneurs at THub, Hyderabad’s startup incubator. “With all the regulatory obstacles around the world, I thank this city for helping make Uber possible.”

Uber will charge Rs. 20 for the first three kilometres and Rs. 5 per kilometre after that. This is apparently more than what it offered in Bangalore before suspending the service because of regulatory issues.

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.

Uber had signed an agreement with the Telangana government last year to invest $50 million in the state. Following up on that, the cab-aggregator opened a customer service and operations support centre in Hyderabad in February this year.

Kalanick added that Uber aims at helping cities reduce congestion and pollution. “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,” he said.

UberMoto will be competing against a few funded startups offering similar services in India, which includes Rapido, Bikxie, Baxi and M-Taxi among others.