India's state-owned natural gas utility GAIL and US-based cab aggregator Uber signed a Memorandum of Understanding (MoU) to promote the use of Compressed Natural Gas as a transportation fuel across various cities in India starting from Bengaluru.
As part of the agreement, GAIL Gas, a wholly-owned subsidiary of GAIL will provide free CNG to the first 500 cars joining under the program, capped at a maximum of Rs 10,000 per car. Gas will extend coupons to each of the participating Uber driver partners for Rs 2,500 per month for the first four months, according to the release issued by the company.
The company said the use of CNG-based vehicles will result in savings of around 50 percent over diesel, 60 percent over petrol, and around 45 percent over auto-Liquefied Petroleum Gas (LPG) for consumers and UBER drivers will be able to save more than Rs 15,000 every month in fuel expenses.
The MoU was signed between the two companies during the inauguration of a GAIL Gas CNG Station at Hardware Technology Park near Bengaluru airport in the presence of GAIL Chairman B C Tripathi, A K Jana, Chief Executive Officer at GAIL Gas and Madhu Kannan, Chief Business Officer, Emerging Markets, Uber.
“Alliance with Uber is a major step to fulfill our commitment in making Bengaluru’s air cleaner by expanding usage of CNG across the popular taxi ridership as we move towards a gas-based economy under Government of India’s vision,” Tripathi said.
As part of the pact, Uber will provide a joining award of Rs 10,000 to each of the first 500 CNG vehicles driving with the platform. Kannan said “We are pleased to partner with GAIL Gas to promote the use of CNG in Bengaluru. With this partnership, we hope to demonstrate the benefits of switching to CNG and accelerate its adoption in the city. For budding and current driver partners on Uber alone, use of CNG is expected to create monthly savings of up to Rs 15,000. Together with GAIL Gas, we hope to develop a CNG ecosystem in the city with the active support of our driver partners as well as the public at large.”
GAIL said six CNG stations are currently operational at Laggere (Prem Nagar), APC Circle (Jigani), Peenya Industrial Area, Sungadkatte and Bommasandra Industrial Area in the city. Overall, 20 new CNG stations are expected to be operation by March 2019 – including stations in Agara, KR Puram, Goravigere, New Airport Road, Tata Nagar and Sarjapur Road.