Global ride-hailing firm Uber is rethinking its car-leasing strategy in India, its second-biggest market, as drivers have returned dozens of leased cars early after the company cut incentives, people familiar with the matter told Reuters.
Uber had planned to buy 15,000 new cars last year and lease them out in a bid to attract more drivers — a strategy it has used in other markets — but it suspended the scheme for a while in December after leasing just a third of that total.
After burning through millions of dollars over three years in a battle for market share with Ola, backed by Japan’s SoftBank, Uber has cut the incentives it gives to drivers and raised the fares it charges passengers.
The incentives — from free smartphones to cash bonuses worth as much as double a day’s fares — meant drivers could earn as much as ₹1.20 lakh a month.