THE head of Uber said Tuesday (22) that the global ride services firm was counting on India, Africa, and the Middle East for future growth amid investor fears about mounting losses and a slump in its share price.
Uber has exited several markets- including China and Southeast Asia to pare back losses, and is in fierce competition with rival Ola in India, a market estimated to be worth $7 billion a year.
Since its public offering in May, Uber's share price has tumbled some 30 per cent, while the company lost $5.2bn in the second quarter.
"India is a fundamental part of Uber's growth going forward... it's a top 10 market for us," chief executive Dara Khosrowshahi told reporters in New Delhi.
"The profitability characteristics of our business here are improving. If I look at Uber's growth over the next 10 years, it's... going to be defined by India, Africa and the Middle East, more so than the developed markets."
Khosrowshahi brushed aside fears the stock price could fall further after the expiration of a lock-up period in November, after which company employees and early investors can sell their shares.
The chief executive, who was in Delhi to unveil an updated version of Uber's app linking the Delhi Metro public transport system with its services, said he was focused on long-term prospects.
The revamped app is part of a global campaign to attract more users.
While India is one of Uber's biggest markets with 12 per cent of its global rides the firm still lags behind Ola in the nation of over 1.3 billion people.
It has also struggled to keep up with the two largest online food-delivery players Zomato and Swiggy.
The company laid off some staff in India as part of global job cuts as it tries to map a route to profitability.
But chief product officer Manik Gupta told AFP that Uber would double its technology team to 1,000 as proof of its commitment to Asia's third-largest economy.
"We definitely want to show our commitment to India," Gupta said.
Uber's third-quarter results will be released in two weeks.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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