Uber finally looks at expanding beyond 31 cities in India

“We are starting to see growth not just in Tier-1 markets but in smaller towns. If you look at what Flipkart and Amazon talk about…a large amount of growth is coming from smaller towns. This is mainly because the incomes have gone up and smartphone penetration is going up in smaller towns,” he added.

The development comes in at a time when Softbank-backed rival Ola has been on an international expansion spree. Besides India, it has expanded its operations to Australia, UK and New Zealand.

Ola recently raised $50 million from two Chinese firms – Sailing Capital and China-Eurasian Economic Cooperation Fund –and it is also in talks to raise a fresh round of $1 billion.

Parmeshwaran, was elevated to the current position from being the head of operations earlier this year.The world’s largest cab-hailing service had previously announced that it was looking to double down on its investments in the country, as it competes with Ola.The company also plans to set up one of its largest technology team in India, followed by the US market.

However, Uber which recently completed over 1 billion rides in India and South Asia is in no hurry to turn profitable.

“We are competing in India for growth. I am sure at some point in time we will also talk about doing it in a sustainable profitable way, but at this point our focus is growth,” he said.

The company is also taking the hike in fuel prices into account on a regular basis and is making necessary corrections in the price. “We have two mechanisms. One is to increase prices and another is to keep prices (the same) and have enough volume. We take appropriate measures on an ongoing basis,” Parameswaran said.

“There may be some places we have already done that (price hike) or need to do that … the other way to look at it is that people don’t take services when you increase the prices; they are very price sensitive. Which means you may get more for a ride but you will get fewer rides which is not making enough money. This is a balance that we have to strike. Thankfully we have a lot of data which helps us make precise decisions on that,” he added.

Uber calls India the largest markets for its pool rides. Besides Uber Go and Pool, it offers autos on its platform. The plan is to launch a bus and other modes of commute soon.