Uber’s platform-based software adapts quickly to regional variations without disrupting operations: Manikandan Thangarathnam, Uber India

In a recent interaction with Express Computer, Manikandan Thangarathnam, Senior Director – Mobility and Platforms, Uber India, shares insights into Uber’s global success and its approach to scaling operations. He discusses how Uber maintains a seamless experience for both customers and earners across 10,000 cities worldwide, leveraging technology to address challenges like compliance, pricing, and route optimisation. He also highlights Uber’s commitment to expanding its electric vehicle fleet, the strategic use of AI for dynamic pricing, and plans to grow operations in new Indian cities. He emphasises Uber’s focus on increasing fleet supply and improving operational efficiency to meet growing demand.

There are very few cab service providers that have a truly global presence. Uber is often one of the first companies that comes to mind, whether we think of Europe, the US, or here as well. I’d like to ask, what has kept Uber at the forefront of people’s minds and at the top of the industry worldwide? What do you think contributes to its success?

There are a few aspects to consider. Uber is a marketplace, and there are three main things we need to ensure for people to be happy. First is how do we make it extremely simple for the customer. Even a non-tech-savvy customer, when they open the Uber app, should be able to get a cab with just two or three button clicks. The payment process should be seamless, and the entire experience should feel smooth and effortless.

The second aspect is the success of the earners. Today, we have more than six million earner partners on our platform. They rely on Uber to make their living. Their demographics are completely different from the rider demographics. So, how do we ensure we build software that is seamless for them, allowing them to enrol easily and make a living using the platform?

The third element is trust and safety, which we must provide to both parties is how do we ensure that we offer a safe and trusted experience for riders while also providing the same level of trust and safety to our earner partners.

Finally, the marketplace itself. To achieve all of this, we need to ensure the marketplace leverages the latest technologies to price rides correctly and match the right rider with the right driver for a successful transaction. If this balance isn’t achieved, people will not be satisfied. Once we have all four elements lined up—customers, earners, trust, and marketplace efficiency, you can see a strong product-market fit in one region, city, or country. The next step is how we can replicate this success faster. By developing a platform that simplifies replication, we make it easier to scale across multiple regions and countries. That’s the power of technology and the platform Uber has built, which allows us to scale globally while still delivering a consistent, magical experience for both riders and earners.

As you rightly mentioned, it’s present in over 10,000 cities across the globe, spanning all geographies. That means you need to comply with the security regulations of different countries. How do you manage that? Do you use the same platform for all countries? For example, you have GDPR in Europe, DPDP here, and regulations in the US. How do you handle that?

At Uber, compliance, safety, and security are top priorities. From the beginning, we recognised the complexity of operating across different regions with varying rules and regulations. Our main challenge is ensuring compliance while maintaining speed in a diverse landscape.

To tackle this, we’ve built our software to be platform-based, rather than designing separate models for each region’s specific requirements. We focus on identifying common elements and isolating region-specific parameters, which can be easily adjusted when rules change—such as tax percentages or driver certification requirements.

When launching in a new city, the system automatically configures the necessary compliance checks. This platform approach allows us to quickly adapt to regional variations without disrupting operations. We also maintain extensive monitoring to detect and resolve issues swiftly, ensuring the integrity of the system across multiple configurations.

AI and  GenAI are currently hot topics in the industry. Can you elaborate on how Uber is utilising AI and machine learning to optimise algorithms for efficient route planning, dynamic pricing, and fraud detection?

As you know, Uber is a very dynamic system. When a customer clicks to get a cab, they expect something to happen within seconds. The driver should accept the request, and the car should show up at their doorstep promptly.

There are a few critical areas that determine the success of this transaction, pricing and matching. For matching, with many drivers on our platform, the question is to whom should this request go. We apply machine learning algorithms to predict which driver should receive the request to ensure a faster acceptance rate. When the acceptance is quicker, the “spinner” time, where the customer waits while we match them to a driver, reduces. We’ve been refining this technology using AI/ML to make it extremely efficient.

The second important factor is pricing. When a customer wants to go from point A to point B, we quickly evaluate various product options and their associated pricing. Pricing is critical because if we price too high, we risk losing customers. If we price too low, demand may increase, but the supply, drivers willing to accept the fare, will decrease. Striking the right balance in pricing is key, and we use numerous algorithms to achieve that.

The real challenge is in the real-time aspect. We’ve developed AI and ML solutions to figure out optimal pricing and matching, but we also gather real-time data on traffic, weather conditions, and more. Factors like rain or heavy traffic influence driver and rider behaviour and the time it takes to move from one location to another. We take all this real-time data and apply it to figure out the right solutions for both pricing and matching algorithms.

Given Uber’s ambitious goal of achieving “zero emissions vehicles” by 2040, how is the company addressing the challenges of expanding its EV fleet? What strategies are in place to ensure that customers have a consistent and reliable option to choose EVs for all their transportation needs?

First of all, the participation of EV fleets on the Uber platform is crucial. When we talk about adding EVs, it’s not just about incorporating another type of car. There are significant technological elements we incorporate to ensure the success of EV fleets on Uber, which is where our investment goes.

For example, battery percentage is critical. If a driver has an EV with a 120 km range, we can’t send them an intercity request of 240 km. Our matching algorithms factor in not only acceptance rates and key metrics but also the range and battery life of EVs to prevent issues like range anxiety for drivers.

Another important aspect is knowing when and where to charge. Drivers want to maximise their earnings, so if they are offline while charging, they aren’t earning. We help by providing information on nearby charging stations, suggesting optimal times for charging based on their location, and recommending quick charge options to get back on the road. For instance, after completing a trip, we might suggest a charging station 500m away that aligns with the next high-demand period.

These technologies make it easier for our partners driving EVs. With these systems in place, we can scale the number of EVs on our platform. Then, our regional managers work with partners to onboard more vehicles. If our tech solutions make drivers happy, adoption will naturally increase. It’s about fostering adoption and usage, driven by the technology we’re building.

Do you think there is currently a lack of charging infrastructure in India, and if so, is it a hindrance to the adoption of EVs on your platform?

From a tech perspective, the good part is that infrastructure will continue to grow. The timing may vary, but there’s no question about that. However, your definition of “good” might differ from someone else’s. What’s important is the technology that enables you to leverage the available resources to make life easier. Otherwise, there’s no good starting point, and there’s no good ending point either. We’re focusing on the tech aspects to ensure that the process is extremely seamless and useful for our owner partners, helping them maximise their time and the efficiency of their operations. 

As EV adoption progresses and infrastructure and technology continue to evolve, there are concerns about the high cost of EV batteries and potential related expenses. Do you think this could have a negative impact on pricing for customers?

Today, if you look at our business globally, we have more demand than supply. That’s why you consistently see growth in companies like Uber, especially in mobility and ride-sharing. 

What we’re doing is trying to onboard all of this onto our platform. We’re not just relying on drivers approaching us, saying, “Hey, we want to be part of the Uber platform.” We’re actually building technology to attract fleet partners who have multiple cars, whether they are EVs or ICE vehicles. We’re also exploring how to integrate with third-party partners who already manage fleets of cars.

It’s a matter of balancing demand and supply, and currently, we have more demand than supply. Once we get that balance right, the amount of supply we have on our system will help determine the pricing. Customers are primarily looking for cars, regardless of whether they’re EVs or not. Since demand exceeds supply, our focus right now is on increasing supply. That’s why we’re investing in figuring out how we can bring fleet partners, those who own multiple vehicles, onto our platform. We’re also working on integrating with third parties who already use some kind of software, allowing them to receive Uber’s demand seamlessly in the background. As supply increases, the pricing will naturally adjust itself.

Given Uber’s recent expansion plans to new cities in India, what technological challenges and opportunities do you foresee in scaling up operations in these regions?

As you already know, Uber currently operates in over 10,000 cities across multiple countries. From a technology and software standpoint, we’ve developed the app in a way that makes it seamless to launch in new cities or countries. It’s the same Uber app no matter where you are in the world. If you travel, you can still use the same app and get the same experience.

What we’ve done is ensure that launching in new locations doesn’t require a lot of effort. We’ve done all the heavy lifting when building the app, so now we can launch new products or expand into new cities with just configuration changes. We observe how the market reacts in a particular city and then proceed to a broader launch in the region. 

From a technology perspective, we’ve made it incredibly easy to scale in different regions and cities. After that, it’s up to the regional heads in each area or country to determine how to best leverage the platform, decide where to launch, and make it operational. That’s the power of the platform we’ve built, it allows us to scale and expand easily into new regions, cities, and countries.

Uber has undeniably become a verb, not just a noun. What is your strategy for the next 12 months? Are there any particular technology roadmaps, new markets you plan to enter, or new offerings for customers and technological advancements you can share with us?

We’re focused on maintaining the exceptional experience for our customers, ensuring quick and reliable access to cars. This relies on many factors, but the most important is supply. More cars on the platform means faster service, better pricing, and happier customers, which drives demand and benefits our owner partners—creating a positive cycle.

Strategically, we’re building technology to drive more supply. We’re developing software for fleet partners to manage their vehicles efficiently. Whether they have 10 or 40 cars, our suite will allow them to track vehicle utilisation and driver acceptance rates, making it easier for fleet owners to succeed on the Uber platform and, in turn, improve the customer experience.

Additionally, we’re exploring how to integrate with third-party supply systems. Many of these third-party drivers already use their own apps, making onboarding difficult. Instead of shifting everyone to the Uber app, we’re integrating with their systems so drivers continue using their own apps while receiving more requests from Uber.

In short, our strategy is to increase fleet supply, enhancing the experience for customers and driving a positive cycle of growth.