Report: Tata Group in discussions with Uber for a strategic partnership for app development

Tata Group is reportedly in talks with Uber Technologies to form a strategic partnership that aims at boosting traffic volumes and engagement on Tata’s digital platform, The Economic Times reported. Tata Neu, part of Tata Digital, aspires to cater to 50% of an average customer’s daily, monthly, and annual needs, but faces challenges such as stagnation in user growth and low customer engagement. 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.

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. This potential alliance comes at a time when Uber is diversifying its services into areas such as grocery delivery and high-margin advertising, with user numbers growing to 150 million from 45 million seven years ago.

In addition, Tata Motors committed to supplying Uber with 25,000 electric vehicles in February, marking the largest EV commitment between an automaker and a ridesharing platform in India. This 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.

Tata Digital 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.

The potential alliance between Tata Group and Uber Technologies could lead to significant developments in the digital platform and transportation sectors, with potential benefits for both companies and their customers. However, the exact details of the partnership are still under discussion, and neither company has confirmed the ongoing talks at this time.