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Uber IPO breakdown: Challenges in India — local competition, driver protests, background checks, pricing regulation, cash payments

Stiff competition worldwide; food delivery competition in India from Swiggy and Zomato Uber notes that its competitors have the capital to offer discounted services, driver incentives, consumer discounts & promotions, innovative products and offerings, and alternative pricing models. Some competitors, it said, have more resources and access to larger driver, consumer, restaurant, shipper, or carrier bases in a particular geographic market. Competitors’ ability to raise additional capital and of providing incentive is unknown, and “any adverse impact on their ability to do so may force certain of these ridesharing participants to focus more on profitability in the nearer term”. Uber notes that competitors offer incentives to both consumers and drivers including Ola in India. Other brands in some places enjoy more brand recognition, longer presence, larger marketing budgets, better localised knowledge, and more supportive regulatory regimes. Uber cites its Uber Eats business in India, where it competes with Swiggy and Zomato, “each of which has substantial market-specific knowledge and established relationships with local restaurants”, giving them the upper-hand. “Such competitors may be able to respond more quickly and effectively than us in such markets to new or changing opportunities, technologies, consumer preferences, regulations, or standards, which may render our products or offerings less attractive.” Uber also expects to continue using continue using river incentives, consumer discounts and promotions to grow business relative to lower-priced alternatives, such as personal vehicle ownership, to increase engagement, and to maintain balance between driver supply and consumer demand. Ridesharing category participants that offer incentives to…

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