To Integrate Its Two-Wheeler Fleet, Uber Has Inked a Contract With Shadowfax

Nitin Konde, Apoorva Bajj

Oct 2, 2024 — 2 min read

To Integrate Its Two-Wheeler Fleet, Uber Has Inked a Contract With Shadowfax

Uber and Shadowfax have partnered to combine UberMoto, the ride-hailing platform's bike-taxi service, with Shadowfax's two-wheeler fleet. During lean hours of work, two-wheeler riders servicing IPO-bound Shadowfax will have the option to switch to UberMoto and offer bike-taxi services.

Uber said in a statement that the collaboration will enable it to expand its operations in cities where Shadowfax is present and enhance its bike-taxi business with more two-wheelers.

Uber has some innovative new business model ideas in the works. As for Uber's goals behind such agreements, Prabhjeet Singh, president of Uber India and South Asia, told the media that the business will have more to say on that in due course, but this is in the queue about actually becoming the operating system for many form factors.

With reference to UberMoto, Singh went on to say that the company wants to integrate third parties with current two-wheeler service providers in the logistics industry to quadruple its stock pool.

Replicating International Business Strategy in India

In New York, Uber launched a comparable third-party technology integration, integrating the city's yellow taxis into its ride-sharing network.

This gives Shadowfax the opportunity to expand the range of products it offers to its two-wheeler driver partners. Shadowfax is preparing an INR 3,000 crore IPO.

Shadowfax is poised to become the most diversified third-party logistics provider in India as a result of this distinct integration, which will make Shadowfax the first app that offers all forms of earning opportunities, according to Praharsh Chandra, Shadowfax's cofounder and chief business officer.

How This Will Work?

Uber said in a statement that users may be paired with Shadowfax drivers when they order an UberMoto through the app. Shadowfax drivers on the Shadowfax driver app will complete these journeys. The rider experience will remain unchanged from their typical Uber trip.

A media report states that the two businesses have a revenue-sharing agreement for rides that are scheduled on UberMoto and are driven by Shadowfax drivers.

Uber India’s Revenue for FY23 Surges by 54%

Uber announced that its operational revenue in India for the most recent fiscal year increased by 54% to INR 2,666 crore, driven primarily by a robust uptick in its ride-hailing business and ongoing expansion in its support and services division.

Uber Inc., based in San Francisco, reported a greater loss of INR 311 crore for the year that ended March 31, 2023, compared with INR 197 crore in the previous fiscal year. This was due to a substantial increase in staff expenses and advertising costs. Based on data from business intelligence platform Tofler, the company's regulatory filings with the Registrar of Companies show that ride-hailing revenue in India climbed by 75% year over year to INR 678 crore in FY23.