According to reports, Tata Group and Uber are in discussions about a strategic partnership to boost traffic and engagement on Tata’s digital platform, Tata Neu.

Tata Group and Uber

According to sources cited by The Economic Times, the Tata Group and Uber Technologies are in talks to build a strategic alliance with the goal of boosting traffic and engagement on Tata’s digital platform.

As part of the partnership, Uber’s services might be integrated into Tata Neu as a “super app” or “anchor app.” But Uber has not answered any questions, and Tata Digital disputes any current discussions.

The goal of Tata Neu, a division of Tata Digital, is to meet 50% of the daily, monthly, and yearly needs of the typical client. But it has problems, like low customer engagement and stagnant user growth. These problems might be resolved by the Uber alliance, which would increase Tata Neu’s daily user base and diversify its line of products.

CEO Consultations and Possible Partnership

Dara Khosrowshahi, the CEO of Uber Technologies, and N Chandrasekaran, the chairman of Tata Sons, met earlier this year in Davos, with Khosrowshahi expecting to continue the conversation during his next trip to India. There is no assurance of specific outcomes, and the rules of engagement are still being worked out.

Uber’s services have been expanded under Khosrowshahi into industries including high-margin advertising and food delivery. Uber, which reported its first full year of operating profit, launched a $7 billion share repurchase program. Seven years ago, the company had 45 million users; today, it has 150 million.

Financial Obligations and User Population

In response to earlier concerns over bugs and a subpar user experience, Tata Digital has updated its approach to improve app functionality and user happiness. A new CEO has been chosen to spearhead company growth and surmount obstacles.

Tata Sons has committed more than $2 billion to Tata Neu, with 60 million installs and 75 million NeuPass subscribers as of this writing. Participation in equity may also be part of the strategic collaboration, albeit this has not been confirmed.

Uber and Tata Motors’ Commitment to Electric Vehicles

In February, Tata Motors made the largest EV commitment between a manufacturer and a ridesharing platform in India when it agreed to supply Uber with 25,000 electric vehicles. The deal may involve a longer-term supply commitment in addition to its goal of electrifying Uber services in key cities.

With a 70 percent market share in passenger electric vehicles, Tata Motors supports Uber’s zero-emission objectives.