Mint Explainer | Why Uber is making a second startup bet in India

The single-partner approach is changing. Uber has invested $7 million in CarDekho Group-backed fleet startup Carrum, which manages about 3,000 electric and CNG vehicles, according to two people familiar with the matter.

Mint He explains what this means for Uber, drivers and fleet operators.

Why is Uber diversifying its fleet partners?

Uber India relied heavily on Everest Fleet for the supply of professional vehicles, especially electric vehicles (EVs). But while travel demand has increased, fleet supply has lagged behind, with major metros seeing an increase of nearly 25% by 2025, according to estimates from the Praxis Global Alliance. Shortages have emerged in Delhi NCR, Bengaluru, Hyderabad and Mumbai.

“The risk of concentration has increased as Everest has emerged as Uber’s dominant organized fleet partner,” said Ram Soni, partner at Praxis Global Alliance Mobility, Energy and Transportation. “Diversifying fleet partners allows Uber to scale supply more quickly and maintain service levels.” Passengers reported increasingly longer waiting times at airports and IT centers, especially during peak hours.

What does Carrum bring that the Everest Fleet doesn’t?

While Everest Fleet focuses on mass-market EV distribution, Carrum offers a different mix. Backed by CarDekho Group, Carrum operates approximately 3,000 CNG and electric vehicles, with an emphasis on CNG-first operations and premium categories.

Soni notes that Carrum has carved out a niche by targeting higher-margin rides by deploying SUVs for Uber Black in Delhi-NCR and Mumbai. This helps fill the gap in the premium segment after the BluSmart disruption, while complementing rather than competing with Everest’s mass-market focus in the near term.

Is Uber defending its EV push with CNG?

Electric vehicles remain at the center of Uber’s long-term decarbonization plans, but the company has softened its aggressive EV stance in the US. Carrum investment in India protects against permanent electric vehicle charging gaps and policy uncertainty and helps ensure the fleet remains operational during the country’s uneven green transition.

Carrum’s CNG-dominant model offers immediate operational stability, with Uber currently deploying more than 250 SUVs from its fleet. Soni notes that CNG fleets provide higher uptime and more predictable economics, while also “reducing exposure to fluctuations in subsidies such as FAME and state-level EV incentives.”

What does this mean for drivers and fleet operators?

According to Praxis Global Alliance, Everest currently supplies around 25,000-30,000 vehicles to Uber India, accounting for a significant share of the platform’s organized fleet out of an estimated 1.2-1.5 million active drivers. Uber also works with other fleet operators such as Lithium Urban, Moove and Camion Logistics.

Praxis Global Alliance estimates that ride-hailing companies are facing pressure from high fleet costs, vehicle churn and driver retention challenges, where the weekly churn rate is around 3%. “A multi-partner ecosystem subtly hands bargaining power back to Uber over pricing, service levels and expansion priorities, while keeping fleet partners economically viable,” Soni said.

For fleet operators who typically operate on thin EBITDA margins of 8-10%, small changes in usage, uptime or commission terms can have a huge impact on profitability. Increased competition can pressure margins but also lead to higher efficiency. The outcome for drivers is mixed: better vehicle availability and more stable working hours, but stricter performance criteria.