Uber has invested $10 million in Indian fleet management startup Carrum Mobility, valuing the company at $168 million post-money. This move is part of Uber’s strategy to rely more on large fleet operators in India to supply vehicles and drivers, with Carrum now owning around 5,100 vehicles across major cities.

The investment brings Uber a stake in Carrum, with the company supplying vehicles for Uber’s entry-level Uber Go, Premier, and premium Black tiers. About 70% of Carrum’s fleet are hatchbacks for Uber Go, 10% sedans for Premier, and 20% SUVs for Black, with Carrum being Uber’s largest fleet partner for Black in India.

Founder and CEO Karan Jain, former McKinsey consultant and ex-founder of Revv, started Carrum in 2024 after CarDekho acquired his previous company in 2023. The startup’s recent financials show a significant increase in revenue to $45 million annually and a net profit of $736,000. Carrum plans to nearly double its fleet to 11,000 vehicles over the next year, expanding into more cities, enhancing technology, and hiring more staff.

Uber and Carrum are also collaborating on new product launches and vehicle supply strategies. While Carrum is not exclusive to Uber, Jain mentioned no plans to supply vehicles to rival platforms. The investment also signals a shift towards a more corporate model for vehicle management, with Carrum financing its vehicles through debt while funding only 10-15% upfront, with costs reducing by 40% in the past year due to a stronger balance sheet and profitability.