Uber’s auto and moto services are expected to contribute ₹36,000 crore to economic activity in 2024, according to a report by the ride-hailing firm and compiled by Public First.

With the increasing popularity of two- and three-wheeler transport facilitating last-mile connectivity, the report notes that Uber Moto and Uber Auto have become essential services in India, the report noted. The report said Uber is estimated to boost driver’s earning by about 24 per cent compared to working without a platform.

50% growth

The total size of the ride-hailing auto market is expected to grow by an additional 50 per cent. In 2023, Uber touched 1 million drivers using the platform in India. India became only the third country to achieve this threshold, after the US and Brazil. The report suggests the ride-hailing auto market could grow by 50 per cent over the next five years.

“Uber has also transformed urban mobility in India, with 84 per cent of users stating that the app has improved the quality of transportation. The report found that 70 per cent of riders find it easier to explore new restaurants and bars, thanks to Uber, while drivers see about a 24 per cent boost in earnings compared to working without a platform. Furthermore, 65 per cent of Uber drivers believe they have more opportunities through the platform,” the report titled India Economic Impact Report.

Safety emerged as a crucial factor for women riders, with 95 per cent citing safety as the top reason for using Uber. Additionally, 84 per cent of women riders believe Uber is the safest way to get home.

Prabhjeet Singh, President of Uber India and South Asia, said, “We are committed to transforming the mobility landscape in India while driving economic growth. Our 2024 Economic Impact report highlights our role in supporting drivers, improving the travel experience of riders, and promoting sustainable options.”

One of the most important measures of economic welfare, according to Singh, is consumer surplus — the amount a consumer would be willing to pay for a service beyond its price.