Even with opposition building against surge pricing in some States, tech-based cab-hailing firm Uber has asserted that it is not a revenue-earning avenue for the firm, and that it happens purely on a technology algorithm.

Uber also hinted at gradual withdrawal of incentives once it establishes itself in a new city.

“There is no human intervention at all (surge pricing). It works on an algorithm based on the data available. The idea is to make a cab available for the customer. It depends on the demand and supply in a particular area,” said Eric Alexander, Uber Head of Business (Asia).

In Hyderabad to announce a tie-up with the Tata Group of Companies on Thursday, he said the company believes in making the business to stand on its own.

He said the company is planning to expand the cab service to 23 more cities by the yearend to take the total to 50.

The firm has entered into an agreement with the Tata Group to help its drivers own Indica and Idigo cars with less hassle.

Loans and insurance

While the loans come from Tata Capital Financial Services and Tata Motors Finance at ‘competitive’ interest rates, ‘affordable’ insurance is being offered by Tata AIG as a package.

Launched in Hyderabad, the scheme will be rolled out to other cities where Uber operates.

“Over the next one year, the initiative endeavours to fuel micro-entrepreneurship across India by enabling over 20,000 micro-entrepreneurs to start their own business on the Uber platform,” said Madhu Kannan, Member - Group Executive Council, and Group Head for Business Development and Public Affairs, Tata Sons.

He, however, refused to divulge the details of the package and the interest rate it charges from the drivers.

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