Ride-hailing platform Uber is bringing back its flagship top-of-the-line product Uber Black to the country at a time when Indian consumers across segments are spending more for premium experiences.
The service is expected to be rolled out in the next few weeks, starting with some localities in Mumbai, people close to the development said.
The company had started its India operations in 2013 with Uber Black, under which C-suite cars such as Mercedes, BMW and Audi were available on demand. It later replaced the luxury cars with the likes of Toyota Innova, Honda City and Toyota Corolla. The service was halted a year later.
The revamped version of Uber Black will be a “far more sustainable model” where customers will be provided with a white glove cab service in bigger cars than currently available commercial sedans, one of the persons cited above said. Sport-utility vehicles (SUVs) and multi-utility vehicles (MUVs) of Toyota, MG and others will be used for the service, the person added.
Uber Black will be priced 30-40% higher than the platform’s existing top product Uber Premier, and the company expects it to have “huge traction with corporate travel use cases,” the person said.
“The service is being launched through Uber’s fleet partners,” the person said.
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The US-based ride-hailing giant has been investing in scaling up its fleet partners. Last year, it led a $20-million funding round in Mumbai-based Everest Fleet, one of its largest vehicle partners.
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Uber’s strategy
The thinking within the company is to be a mobility app that serves all groups of customers, another person aware of Uber’s operations said. “To that extent, the platform is looking at introducing products for both ends of the spectrum,” this person said.
The company is adding products such as Uber Black in addition to intercity rides and rentals to chase higher average ticket sizes and a more profitable dollar from the Indian market.
“For Uber in India, its premium ride-hailing products are growing much faster than Uber Go, which is the entry-level on-demand taxi offering…and the company is looking to double down on the higher-end services,” the person said.
Uber confirmed the relaunch of Uber Black service to ET, but did not comment on the specifics.
“There is a critical mass of travellers that are willing to pay a premium for on-demand services that give them high-end experience and as Uber caters to a full spectrum of riders with different mobility needs, we are responding to this growing demand,” a company spokesperson said.
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Premiumisation trend
Premiumisation as a trend has been playing out in the Indian consumption patterns across segments such as fashion, beauty, electronics, vehicles and travel, especially after Covid-19.
In July, ET reported that for the first time, vehicles priced more than Rs 10 lakh accounted for nearly half of all vehicles (about 48%) sold in the country between January to June this year, compared with 44% in the same period last year. Similarly, the share of smartphones costing over Rs 30,000 went up to its highest level of 20% of the overall market by number of units sold between January to May, up from 17% a year ago. By value, it was at 49% share.
“Brands are investing more in creating premium experiences as consumers look to pay more for convenience and social status. Recently, IndiGo, which is a budget, no-frills airline, also announced it will offer business class products,” a mobility-focused investor said on condition of anonymity.
“Within ride-hailing, too, there is a cohort of consumers that are willing to pay more for cars that are quickly available, are more comfortable and have drivers that are well-trained to deal with a premium-paying customer,” he said.
Over the recent years, as cab aggregators like Uber and Ola have struggled to maintain reliability and quality of service on their basic offerings, it opened up an opportunity for more premium cab operators to enter the space. These include electric vehicle ride-hailing firm BluSmart and premium taxi service startup Shoffr.