Uber is set to relaunch its luxury ride-hailing service, Uber Black, in India, catering to the growing demand for premium experiences among Indian consumers. The revamped service is expected to begin rolling out in Mumbai within the next few weeks.
Initially introduced in India in 2013, Uber Black offered high-end vehicles such as Mercedes, BMW, and Audi. However, it was soon replaced by more affordable options like Toyota Innova and Honda City and eventually discontinued. The new iteration of Uber Black will feature a “white glove” service with a fleet of larger, luxury vehicles, including SUVs and MUVs from brands like Toyota and MG, replacing the standard sedans previously used.
This upgraded service will be priced 30-40% higher than Uber’s current premium option, Uber Premier. The company anticipates strong demand for Uber Black, particularly from corporate travelers seeking a higher level of comfort and prestige. The service will be operated through Uber’s fleet partners, with the company having recently invested $20 million in Mumbai-based Everest Fleet to support this initiative.
Uber’s broader strategy in India is to cater to a diverse range of customer segments by expanding both premium and entry-level services. The company is focusing on increasing the average ticket size and profitability by enhancing its high-end offerings, given that its premium ride-hailing products are experiencing faster growth compared to its budget options like Uber Go.
The trend towards premiumization is evident across various consumer sectors in India. Following the pandemic, there has been a noticeable shift towards higher spending on luxury goods and services. For instance, vehicles priced above ₹10 lakh accounted for nearly 48% of all vehicle sales in the first half of the year, up from 44% the previous year. Similarly, high-end smartphones, costing over ₹30,000, now represent 20% of the market by unit sales, and 49% by value.
Brands across sectors are investing in premium experiences to meet this demand for enhanced convenience and status. Even budget airlines like IndiGo are now offering business class products to capture this market. In the ride-hailing sector, the demand for premium services has opened opportunities for new entrants such as electric vehicle firm BluSmart and premium taxi service Shoffr, alongside established players like Uber.
Uber confirmed the return of Uber Black but declined to provide further details. A company spokesperson noted that the reintroduction aligns with the growing consumer interest in high-end, on-demand services, underscoring Uber’s commitment to addressing diverse mobility needs.
