Hyderabad: Ride-hailing firm Uber Technologies on Tuesday said it will launch its bike taxi service UberMOTO in Hyderabad from January next year. The company already operates the service in Gurgaon.

Uber had earlier launched the service in Bengaluru, but had to shut it after the state government said it did not obtain the necessary permits to do so.

Uber’s domestic rival Ola, run by ANI technologies Pvt. Ltd, which launched the bike taxi at the same time, also had to shut down its bike taxi service in Bengaluru.

In Telangana, however, Uber has signed a Memorandum of Understanding with Hyderabad Metro Rail Ltd to extend last mile services with the help of UberMOTO when the metro service launches.

“We’re one of the most progressive states in India. We work closely with Uber in making sure that the best strategic services have been made available to lakhs and lakhs of people in Hyderabad," said IT and panchayat raj minister of Telangana, K.T. Rama Rao, at a press briefing. “I believe the MoU with the Metro will be a great service because the last mile is always a challenge."

Uber will charge ₹ 20 for the first three kilometres and ₹ 5 per kilometre after that. When Uber first launched its bike taxi service, experts said this may help it add significantly to their consumer base, by virtue of the cheaper price points, but would also add to its cash burn.

Uber is competing with rival Ola to lead the ride hailing market in India, especially after it sold off the China business to local rival Didi Kuaidi.

While it is trying to make its Bengaluru technology centre a hub of product innovation, Uber’s second largest presence in terms of employees is in Hyderabad.

Roppen Transportation Services Pvt. Ltd, which owns and operates bike taxi start-up Rapido, Gurgaon-based Bikxie, Baxi and M-Taxi are some of the bike-taxi start-ups that have raised funding in India.

Globally, bike taxis have found significant traction in Southeast Asia. Companies such as Singapore-headquartered GrabTaxi and Indonesia’s Go-Jek are a few big companies in this segment.

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