The Tata Group is in discussions with Uber Technologies to forge a strategic partnership to boost traffic volumes and engagement on Tata's digital platform.

The partnership could involve incorporating Uber's services as a 'grounding app' within that community. Stagnation in user growth and low customer engagement has been some of the challenges faced by Tata Neu.

After meeting with Tata Sons chairman N Chandrasekaran in Davos earlier this year, Uber Technologies CEO Dara Khosrowshahi is expected to speak with him again in Mumbai during the latter's forthcoming India trip to discuss the broad contours of a possible alliance.

The precise terms of the engagement are still being worked out, and there is no guarantee that they will result in anything tangible.

Tata Digital, which operates Tata Neu, denied that any talks are ongoing.

User numbers have ballooned to 150 million from 45 million seven years ago, when Khosrowshahi took charge of the cab aggregator. Uber announced a $7 billion share buyback program, days after reporting its first full year of operating profit. This makes it the latest Silicon Valley Company to step up returns to shareholders.

In February, Tata Motors signed an agreement with Uber to supply 25,000 electric vehicles It's the largest commitment between an automaker and a ridesharing platform in India. The XPRES-T EVs will be delivered to Uber fleet partners in stages by Tata Motors. The alliance will aid in the electrification of Uber services in Delhi, Noida, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad.

The long-term supply commitment may be part of the strategic alliance. The automaker owns a 70 percent stake in the passenger electric vehicle sector and intends to have a majority-electric vehicle fleet by the year 2030.

The alliance aligns with Uber's zero-emission goals and Tata Motors' vision for electric vehicles in India.