India orders Uber and Ola to have 40% of fleet electric by 2026
India is serious about replacing gas and diesel vehicles with electric ones. The Indian government plans to mandate ride-hailing companies Ola and Uber (UBER), which have a massive fleet operating in the country, to convert 40% of their fleet to environmentally friendly electric vehicles by April 2026, according to Reuters.
This move could make India less reliant on oil imports, which have been impacting the country’s deficit. Oil prices’ recent rally caused the Indian rupee to depreciate sharply against the US dollar.
Uber faces several challenges in India
The new rule could prove to be another headwind for Uber in India, an important market for the company. It has been spending significantly on marketing in the country. It faces stiff competition in India from Ola, which has started working on its fleet of electric vehicles.
Uber has roped in cricket icon Virat Kohli as a brand ambassador for the Cricket World Cup, and is spending aggressively on promotions for Uber Eats, one of India’s leading food delivery services. Uber Eats has grown rapidly. However, these promotions are hurting the company’s bottom line, and it posted a net loss of $1 billion during the first quarter.