Uber plans to create 75k jobs in India’s Maharashtra state

When Uber entered South Africa, it experienced difficulties with meter taxi associations and the government. With almost each city Uber has launched in, its problems appear to be following it around, but thus far the company has been innovative about how it deals with these problems. The latest Uber initiative in India might change the way the ride-hailing service is perceived. News coming from India is that Uber has entered into a partnership with the government of Maharashtra through its Skill Development and Entrepreneurship Department (SDED).

In a Memorandum of Understanding (MoU), Uber commits to creating 75 000 jobs in the Maharashtra state, whose capital is Mumbai. According to reports, the company will focus on training women and people from marginalised sectors of society, creating equal and fair opportunities for all sectors of society to earn sufficient income as independent entrepreneurs on the platform.

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Speaking about the MoU to create 75 000 jobs, Shailesh Sawlani, GM, Uber West, said:

“We are deeply committed to the promotion of equal opportunity among all sectors of society and are happy to be part of the Make in India initiative through this MoU with the SDED, Govt. of Maharashtra to encourage and give women and persons from marginalised societies an opportunity to become micro-entrepreneurs through our platform”

This is a turn around for the state of Maharashtra. In 2015, the government of Maharashtra released a draft notification of its City Taxi Scheme, that was meant to regulate the service.

The company pointed out how the scheme would seriously hinder its operations in the state. According to Uber, the scheme, if passed, would have a negative impact on consumer choice and freedom by limiting the number of vehicles that can register on the platform, resulting in reduced availability. It would also, in Uber’s view, to protect the incumbent taxi industry, compel consumers to pay a premium fare, which Uber said would be far more than is necessary.

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Uber is now present in 400 cities, across 68 countries, delivering not only people but food and packages. For such a behemoth of a company, with all its innovative business strategy, it can certainly do more to create jobs. Though there is still a grey area around its insisting that drivers are partners and not employees, thus sidestepping employment regulations, Uber has proven to offer job opportunities for communities and this is something governments have to look into and exploit.