Tata Group in talks with Uber for strategic partnership for app, says report
Tata Neu, positioned as a 'super app.' However, Tata Digital denies any ongoing talks, and Uber has not responded to queries. Tata Neu, part of Tata Digital, aspires to cater to 50% of an average customer's daily, monthly, and annual needs. However, it faces challenges such as stagnation in user growth and low customer engagement.
The partnership with Uber could address these issues by attracting daily users to Tata Neu and broadening its product portfolio. Also Read | Infosys-Pacific International deal valued at $300 million 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.
Khosrowshahi has diversified Uber's services into areas such as grocery delivery and high-margin advertising. With user numbers growing to 150 million from 45 million seven years ago, Uber announced a $7 billion share buyback program after reporting its first full year of operating profit. Also Read | RIL Tata JV: Mukesh Ambani's Reliance mulls buying 29% stake in Tata Play from Walt Disney Addressing previous complaints about glitches and poor user experience, Tata Digital has revised its strategy to enhance app performance and user satisfaction.
A new CEO has been appointed to drive business expansion and overcome challenges. Tata Sons 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.
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