Right now the U.S. represents the biggest market for rideshare start-up Uber but India could very well, and very soon, take that spot given a multi-million deal Uber has made to promote and market its service.
Uber Technologies and Times Internet, the digital business of the Times of India media conglomerate, are now in what Uber terms a "strategic partnership," which Uber hopes will expand its services in its second biggest market next to the U.S. In exchange Times Internet has bought itself a piece of Uber for about $16 million dollars.
"The deal is centered around a commercial marketing arrangement accompanied by a small investment," Uber stated Monday in an announcement on the deal.
The Times Internet will drive marketing promotions on Uber through its media channels and help Uber, which is based in the U.S., customize its service in India.
"India is one of our fastest growing markets ... where we are investing heavily in continued growth," Uber Chief Executive Officer Travis Kalanick said in the statement.
Uber needs some positive press in India to hurdle some regulatory challenges and the fact it was banned from operating in New Delhi for a short time period following a rape accusation involving one of its drivers last December.
The accused driver is awaiting trial. Meanwhile Uber resumed operations in New Delhi in January while its application for a radio taxi license goes through the regulatory review process. The car service has stated it will now only hire drivers who pass law enforcement-level background checks and independent background checks.
Currently Uber provides car share services in 11 cities in India, including New Delhi.
At the end of 2014 Uber signed a deal with China's biggest Internet search company, Baidu, to integrate Baidu's map and mobile search with the rideshare service. Reportedly Baidu invested $200 million in that partnership.
"We are working on smart promotions and integrations to build awareness and excitement around Uber, which you'll see in the coming months. And on the ground, we will help Uber with market insights, product localizations, and other India specific requirements," Satyan Gajwani, CEO of Times Internet, told a media outlet.
