Khosrowshahi asks India to shun car ownership ‘trap’
NEWDELHI: Uber Inc.’s chief executive officer (CEO) Dara Khosrowshahi on Tuesday dived into the raging debate in India on whether millennials prefer purchasing cars over other options such as electronic gadgets.
Khosrowshahi urged Indians to resist falling into the trap of owning cars, like their counterparts in the developed world, and instead take on these so-called “established industries” by focusing on innovations to make travel convenient.
He said there is very high car ownership in the developed countries, which is “a trap that can sometimes prevent innovation because you have a central infrastructure that is designed for the last 10 years versus infrastructure that is designed for the 10-20 years.”
Khosrowshahi comments follow the government’s recent statement that a change in mindset, especially among millennials is affecting car sales in India.
Last month, finance minister Nirmala Sitharaman attributed the fall in car sales, among other factors, to millennials not wanting to commit to monthly instalments for buying cars and instead preferring to take appbased taxis such as Ola and Uber. She found support from RC Bhargava, chairman, Maruti Suzuki India Ltd, who in an interview said many youngsters are preferring gadgets over cars as they can continue using Ola and Uber for their mobility needs which is much more economical.
“For the newer generation, the dream is not to own a car but the freedom to have any kind of service on demand. I think that established protocols and industries are enemies of innovation and India can be a trailblazer by taking on established industries,” Khosrowshahi said.
He was speaking to reporters during an event to announce Uber’s tie-up with Delhi Metro Rail Corporation (DMRC) to provide last mile transportation services.
His comments come in the backdrop of India becoming a key focus region for the ridehailing platform, especially in the aftermath of losing the battle in China to local rival Didi Chuxing.
India is one of Uber’s largest markets globally, and Khasrowshahi said the San Franciscobased company has committed to continue its investments in the country for the next 5-10 years.
India’s automobile sector is the middle of its worst slump in about two decades amid a slowdown in the economy, led by sluggish demand and slowing private investment.
“The opportunity here in India is that India doesn’t need to be trapped by this establishment. India can actually be an innovator at mass for the developing countries in the world and can be a trailblazer and today we can look back at a day when innovation was accelerated,” Khosrowshahi said.