Uber is Losing $22 Billion a Year Due to Excessive Traffic in 4 Indian Cities

By Olga Robert
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    The Boston Consulting Group (BCG) conducted a study for Uber which revealed that commuting in the Indian cities of Bengaluru, Mumbai, Delhi and Kolkata took 1.5 hours longer than usual for a given distance during peak traffic hours. It also said that these four cities were 149% more congested than comparable cities of Asia, which makes Uber lose $22 billion in comparison to the non-peak hours.

    Uber is Losing $22 Bn a Year Due to Excessive Traffic in 4 Indian Cities

    The study titled "Unlocking Cities: The impact of ridesharing across India," showed that ride-sharing was the only solution to this problem.

    During the press report, president of Uber India and South Asia said, "We continue to be at the forefront when it comes to unlocking the true potential of ridesharing for India. Through this study, we are hoping to draw the attention of administrators and urban planners on how shared cars and mobility can be part of the solution vs individual car ownership."

    The survey also found out that 89% of the people were planning to buy a car in the next 5 years. However, 79% said that they would choose to not buy a car if ride-sharing would prove to be as affordable and convenient as owning a car.

    Uber's Global COO Barney Harford said that "If car ownership trends continue, Indian cities risk coming to a complete standstill in only a few years."

    Read more about: uber
    Story first published: Thursday, April 19, 2018, 11:44 [IST]
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