Uber and Ola battle for Indian railway tie-ups
Uber and Ola are vying for supremacy on India's railway tracks. The rival ride-hailing apps are racing to team up with Indian Railways to offer services to rail passengers. Indian Railways carries more than 23 million passengers a day, stopping at over 8,000 stations. Uber has proposed setting up kiosks at stations and helping the rail firm upgrade its app. But while the US firm is making strides in India, Ola still holds the majority market share.

NEW DELHI: Next time you book a railway ticket, don’t be surprised if you get an option for Uber to take you to the station. Or drop you when you reach your destination. The US ride-hailing company, targeting some of the millions of Indians who travel by train, has approached the Indian Railways with a host of proposals – from integrating its service with its app and website to ferrying passengers to and from stations in various cities, according to a person familiar with the development.A deal could add about Rs150 crore in revenue for the railways annually from commissions on cab bookings and leasing of premium space at stations to Uber for pick-ups and drops, according to the person. Uber did not respond to an emailed questionnaire sent on Monday.The Indian Railway Catering & Tourism Corporation Ltd (IRCTC), an arm of the Indian Railways, manages services such as online ticketing. Its website also allows passengers to make hotel, cab and bus bookings. IRCTC generates more than $3 billion of revenue annually, making it one of India’s largest ecommerce sites. The Indian Railways runs 12,000 trains that carry over 23 million passengers a day, connecting about 8,000 stations.Uber has proposed setting up kiosks at stations to assist passengers in booking rides, dedicated pick-up and drop locations at stations and providing technological help to the Indian Railways to upgrade its app. The person said that by integrating Uber’s service in IRCTC’s app and website, passengers will be able to book cabs on their travel dates.The person said Uber has not specified the number of stations and which cities it would be targeting if a deal goes through. Initially, it may want to start with all metro cities. “The number of stations are not specified so far,” said the person who asked not to be identified.“We are seriously considering this proposal and a decision could be taken soon. The revenue model with Uber is yet to be finalised,” a top rail board official told ET. Earlier this year, Uber formed a partnership with American Airlines to guide passengers to pick-up locations in 11 major airports in the US.In India, rival Ola has tied up with Mumbai Metro to offer shared rides from stations on the Versova-Andheri-Ghatkopar corridor for Rs3 per km.The move has angered local taxi and autorickshaw operators who say such low prices would jeopardise their businesses. India has assumed greater significance for San Francisco-based Uber after it sold its operations in China to rival Didi Chuxing Technology.India is the second-biggest market for Uber, accounting for about 12% of its global market share. Ola, backed by SoftBank and other foreign investors, is taking Uber head-on in India and aggressively expanding across the country.