Why Tata wants Uber to speed up its super app Tata Neu
Tata Group's ambitious project of being the sole leader of the super app race by investing over $2 billion has been marred with leadership issues, stagnation in user growth and low customer engagement. In a bid to revive its position, Tata Group’s digital arm has initiated conversations with Uber for a strategic partnership to increase traffic and revenue, ET has reported recently.
Dara Khosrowshahi of Uber Technologies and N. Chandrasekaran of Tata engaged in talks during a meeting in Davos earlier this year, with expectations of further discussions in Mumbai during Khosrowshahi's upcoming visit to India, said executives aware of the matter to ET.
With Neu, launched in 2022, the Tata Group aims to increase its share in the country’s e-commerce market which is expected to be world's second-largest by 2034, with an anticipated annual gross merchandise value of $350 billion by 2030. Currently, India’s first super app faces competition from e-commerce giants like Walmart-owned Flipkart, Amazon India and Reliance Industries’ Jio Mart.
Why is Tata Group trying to get Uber’s help?
Since its inception, Neu, offering electronics, groceries, and e-pharmacy services, has struggled to establish strong consumer loyalty. Despite onboarding Air Asia, Indian Hotels, and other Tata Group entities such as Titan, Tanishq, and Westside, the app's adoption has been slow among users. Tata Group with already present services onboarded its Tata Neu HDFC card recently.
Since the launch of Neu, Tata Digital, which houses the Tata
