Uber and Hero MotoCorp in talks for a strategic alliance

Aiming the Indian two-wheeler taxi market, Uber, world’s largest ride sharing application, is discussing a strategic alliance with country’s largest two wheeler manufacturer Hero MotoCorp. With both Ola and Uber trying to gain market share in one of the largest ride sharing market, strategic alliances with OEM have become a major brownie factor.

Uber and Ola have attempted an entry in the domestic two-wheeler taxi market but have faced hurdles in different markets since different states have different rules and regulations, including licensing obligations for commercial usage under the Motor Vehicles Act. Inclination to have a strategic alliance will help the firms solve at least the vehicle procurement issues. Also, new models can be created custom made for Uber.

A brokerage firm’s analyst reported that “Things are at a very early stage and the plan is to look at jointly tapping the growing opportunities in the nascent domestic two-wheeler taxi market in India. Currently, the discussions between both parties are preliminary in nature and may not necessarily result in a strategic alliance or tie-up”.