Claims of 'exploring options to exit India' false, says Uber

NEW DELHI: Ruchica Tomar, Uber spokesperson dismissed a Bloomberg's reporting which said that the company is looking to leave the county and said that it is false adding that the ride-hailing firm is not looking to exit Indian by selling its local unit.

"India is as important to Uber today as it was when we launched nine years ago. We are serving riders and drivers across more than 100 cities, hiring Indian talent aggressively, and planning for the next decade and beyond," said Tomar.

Citing sources, a report said that Uber Technologies Inc has been exploring options, including sales, for its Indian ride-hailing business but the talks have been put on hold following tech startup valuations cratered. The report was also rejected by Uber CEO Dara Khosrowshahi in a tweet: "Amazing that they ran this story – there is zero truth to this story – wasn't explored, wasn't considered, discussions didn't happen, at any level – and we told Bloomberg as such."

The CEO in April this year said that products offered to Indian customers continue to expand and that they are looking to be in India for quite some time. The report says that Uber had begun to look for replacements and has approached several interested parties after realizing that there is limited potential for profitable expansion in the country, according to the New Indian Express.

Uber and its biggest rival in India, Ola, which is based in Bangalore, are struggling to make a profit in the price-sensitive market. In addition, Ola and Uber are facing setbacks for exploiting driver-partners and charging high commissions.

Recently, the company has come under criticism from consumer forums for being an unfriendly platform. By 2020, Uber had already sold its Indian food distribution business to Zomato in exchange for a stake in a local startup.