Uber CEO expects to ride developing market growth in next decade

Thursday, 24 October 2019 00:30 - - {{hitsCtrl.values.hits}}

NEW DELHI (Reuters): Uber pinned its growth over the next decade on developing markets like India on Tuesday, despite the problems it has faced in establishing itself in China and Southeast Asia.

India is a very competitive market with demanding consumers but its “profitability characteristics” are improving, Uber chief executive Dara Khosrowshahi told reporters on Tuesday.

“If I look at Uber’s growth over the next 10 years it’s going to be defined by markets like India, Africa, the Middle East more so than the developed markets such as the US and Europe,” Khosrowshahi said.

While the United States is Uber’s biggest market, it faces stiff competition from local rival Lyft.

Uber, which in August reported a second quarter loss, has not yet said when it expects to make a profit. It is trying to convince investors that growth will come not only from its ride services, but from other logistics and food delivery services.

Last year Uber said it would increase its investments in India after it sold its Southeast Asia business to Singapore’s Grab Holdings. And in March Uber agreed to buy its Middle Eastern rival Careem.