Uber Leads $20 Million Funding Round in Mumbai-based Everest Fleet

Cab aggregator giant Uber has taken the lead in a recent funding round worth $20 million for Everest Fleet, a fleet operator based in Mumbai.

This marks Uber's first investment of this nature in India, and it comes at a time when the company is expanding its services to include electric vehicles (EVs), partnering with fleet operators like Everest. Interestingly, Everest also collaborates with Uber's major competitor in India, Ola, which SoftBank backs.

Siddharth Ladsariya, the co-founder of Everest Fleet, expressed excitement about the funding, stating, "This funding round will accelerate our transition from being a CNG-dominated fleet to one with CNG and electric vehicles in the next five years. By 2026, we aim to have 10,000 electric vehicles as part of our overall fleet."

Everest currently operates in seven cities in India, including Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune. With the infusion of capital from this investment, Everest intends to expand its presence to other major Indian cities as well as explore new global territories.

Although Uber will only acquire a minority stake in Everest, this move signifies a departure from Uber's previous approach of maintaining minimal control over its fleet. In February, Uber entered into a partnership with Tata Motors to add 25,000 EVs to its fleet. These vehicles are being purchased by Uber's fleet partners, including Everest.

Last month, Uber launched its Uber Green service in India, enabling users to request EVs for their commutes. Initially available in Delhi, Mumbai, and Bengaluru, this service aims to contribute to a greener transportation ecosystem.

Prabhjeet Singh, President of Uber India and South Asia, praised Everest Fleet, stating, "Everest has grown its fleet at an impressive pace and has set new industry benchmarks in asset utilization. With the addition of new cars, including electric vehicles, Uber will continue to deliver a great service experience to riders."

This investment holds strategic significance for both Everest and Uber. Everest will bolster its capacity to cater to the needs of Uber, while Uber is making a bet on the growth of the EV ride-hailing segment. In India, Uber Green competes with other players like BluSmart and Evera.

However, Uber's electrification efforts for its fleet involve a long-term process that relies on partnerships with fleet operators like Everest, as well as startups such as BluSmart, which manage their own drivers and fleets. Establishing the EV ecosystem for on-demand cabs requires more extensive efforts than conventional fuel options like petrol, diesel, or CNG. This includes building charging infrastructure and vehicle financing. As a result, companies like Ola and Uber need a certain level of control over their fleets, which is challenging with asset-light models.

Apart from Everest, Uber has partnered with other fleet operators such as Lithium Technologies and Moove for EV deployment. The company has also brought its collaboration with BP—an investor in BluSmart—to India through Jio-bp. Additionally, Uber has tied up with GMR Green Energy to facilitate fast charging for Uber EVs.

Furthermore, state governments are indirectly encouraging cab aggregators to adopt EVs by introducing regulations. For instance, the Delhi government has proposed draft rules for aggregators, requiring four-wheeler aggregators to convert 5% of their fleet to EVs within six months of the final notification and achieve 100% EV fleet conversion within five years.

The partnership between Uber and Everest Fleet, combined with Uber's push toward EVs and the support of state governments, sets the stage for a greener and more sustainable future for ride-hailing services in India.

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